“Working with Self-Employed Borrowers”

I have always had a special place in my heart for self-employed borrowers and they can certainly be a challenge. My special place is that I have never had a “real job” and have always been self-employed. 

I met with Ed, he had two mortgages, both at high interest rates and he wanted to combine them and lower his rate. When reviewing the credit, his mortgage history was impeccable, but the rest of his obligations, were not always paid as agreed. 

He explained, that being a contractor, he paid his bills after he got paid for his jobs. I could tell that he didn’t manage his cash flow very well, but I have to work with his present situation. Even though his credit scores were not very good, they were sufficient to get a refinance accomplished. Combining his two mortgages into a new loan is going to save him $460 per month. 

He has $12,000 worth credit card debt, if he took the $460 per month and put that money toward these obligations, he has them paid off in two years. Hopefully Ed will now be able to do a better job managing his short term obligations.