this is for the financial advisers, bankers, and real estate agents on this board. others can put in their 2cents if they wish.
this is the situation, i am a full time student and working online (undeclared income).. alhamdulillah i am trying to save to buy a house but i am afraid the banker will not give anything to me since i cannot show financial stability. now what can i do right away to change this? should i officially open a business?
Re: Need financial advice
Openning business might help ..
or a 40% down payment, at least..
that way .. bank knows that thier money is safe ...
Re: Need financial advice
there are no doc loans available,
maybe with higher interest rates and a bigger down.. but defo u can buy a house,.. make sure they dont slap u with a variable interest or interest paid only for the first 7 yrs kind of a bad deal loan.. negotiate a lot.. when the interest rate is offered.. tell them others are offering u less .. do a lil reaserch at http://www.bankrate.com/ they update interest rates daily so u can be more confident abt the current market rates..
the mortgage companies do their trick a day before ur closing.. if u can let the first house (that u want to close) go… cose they will jackup the interest rate or ask for other types of payment right before closing… just a personal exp and heard from friends..
ask for a ‘good faith estimate’ from the loan officer just so they can’t add other fees later on..
its really nasty for the first home buyers, but u can definately get a loan.. with no documents/ income.. just be prepared to give a little larger downpayment.. or higher rate..
goodluck
Re: Need financial advice
Openning business might help ..
or a 40% down payment, at least..
that way .. bank knows that thier money is safe ...
its not always a 40% down for a no doc loan..
Re: Need financial advice
^^
What works in the US is different to wha works in Canada; banks here are more stringent and stingy with mortgages.
Re: Need financial advice
ah so the fellow resides in canada.. that just suxx
hope u still can …
Re: Need financial advice
You'd do better with an established credit history...get yourself a credit card and instead of paying cash for your groceries, use the card and just pay it off at the end of every month. You'll acquire a good credit history quickly that way. That will allow you to go for many more types of mortgages - even with only 10 percent down, terms of 30 years and fixed interest rate.
And yes! my goodness! establish a declared home business! You'll be able to declare many expenses on your tax return - phone bills, travel exenses etc. And once you own a home, you will be able to "write off" part of your mortgage, heating bills etc. It should cost 150 to 300 to have a tax guy set this up for you but the return on that investment is amazing.
Re: Need financial advice
the mortgage companies do their trick a day before ur closing.. if u can let the first house (that u want to close) go... cose they will jackup the interest rate or ask for other types of payment right before closing... just a personal exp and heard from friends..
That is so true ... one needs to have a very tough, cool and well prepared mind, cause these guys use that last minute anxiety and excitement of first time buyer to get some more money out of him. I kind of went through that myself.
Re: Need financial advice
yes i am from canada, thanks guys
Mamaof3, I have been using a cc for 2 years now, use it for everything and paying it off right away. also how would i be able to declare the past month's income if i setup a business right now? thanks
Re: Need financial advice
I dont know what do you mean by undeclared income .. does that mean you were not paying taxes on the money you were earning in Canada..
If that is the case ... you are better off not declaring any past income now ... cause tax department can get you on that ...
Re: Need financial advice
If you set up a business today, save EVERY receipt for everything you buy. You can write off restaurant bills, part of heating and phone bills, part of mortgage or rent - starting from the day that you establish your business. I dont know how much you can write off from prior to establishment of business, I'm sure theres a way since setting it all up is an expense in itself - but you need one of those financial advisor/tax people to tell you the ins and outs. we did it like 5 yrs ago and I know we get LOTS more back now but i dont remember the exact details, sorry.
Re: Need financial advice
it is no doubt crucial to have good credit and an income history while living in the US and Canada..you should work towards that... but also make a cpl calls to mortgae companies and local banks or just go online and ask for your options regarding a no document loan..
just so you know your options..