Posted on: 03rd Nov, 2012 11:01 am
Ok I have a question
Sorry here is the question.
I have about $1 million in stocks, another $400k in property value, and I own the lot I will be building on which is valued at about $300k. I will be putting $400k down on the building of my new home, and need to borrow about $600k. The problem is that I own my own business and last year only reported $75k in income which included distributions, the year prior was $150k. The business is up and down throughout the years. I could easily afford to buy the home outright if I sold my stocks, however I would rather take advantage of low rates. Will I be approved based on my assets alone?
I have about $1 million in stocks, another $400k in property value, and I own the lot I will be building on which is valued at about $300k. I will be putting $400k down on the building of my new home, and need to borrow about $600k. The problem is that I own my own business and last year only reported $75k in income which included distributions, the year prior was $150k. The business is up and down throughout the years. I could easily afford to buy the home outright if I sold my stocks, however I would rather take advantage of low rates. Will I be approved based on my assets alone?
Hi Brian,
You may not get qualified for a home loan based on your assets. The lender will want to check your income and financial stability in order to provide you with a loan.
Thanks
You may not get qualified for a home loan based on your assets. The lender will want to check your income and financial stability in order to provide you with a loan.
Thanks
Your credit score, income, assets will come into play while offering you the mortgage loan. It will be up to the discretion of the lender whether or not he/she will approve you the loan based on your assets.
Are you seeking a construction to permanent loan or just need the end financing/mortgage?
If you are seeking a vanilla mortgage - then most if not all lenders will average your net income for the past 2 years.
Construction to permanent lenders vary on their guidelines and programs.
Feel free to contact us if you have any questions.
If you are seeking a vanilla mortgage - then most if not all lenders will average your net income for the past 2 years.
Construction to permanent lenders vary on their guidelines and programs.
Feel free to contact us if you have any questions.
The loan lenders will look at your financial credibility along with the assets. Thus, it is very essential to have a good financial stability to get a home loan approved at a low interest. But, at your current credit status, you can get a loan but at a very high rate of interest. Thus, for now, it is advisable to build up your credit first and then go for a home loan.