“But How Much was Net Profit?”
Hey
Joe, I can’t tell you that I am very happy with what you told me. How
does it make any sense that my business brought in $223,000 last year
and you can’t qualify me for a $200,000 mortgage?
This problem has been around for a long time when it comes to the
self-employed. Sure, I can understand how someone would think bringing
over $200,000 in revenues would allow someone to obtain a $200,000
mortgage, unfortunately that is not the case.
This individual showed a net profit of $3300 and in 2015 showed a loss of
$1900. I can understand someone wanting to pay the least amount of
income taxes, but it makes it almost impossible to get a $200,000
mortgage.
I did have a conference call with him and the accountant and hopefully they will have a better plan going forward.
