If you plan to purchase a property in 2016, it may be a wise decision to have your favorite loan officer/real estate agent discuss your debt ratio prior to filing taxes.
If you are self-employed, don't make the mistake of showing low or limited earnings while trying to buy a home. The housing market picks up during the summer, but by that time the damage is done if you already filed your taxes and chose to reduce your taxable income to a level where you no longer qualify. There have been countless conversations with business owners who say, "I have money going into my checking account, look, we make good money". But....... on paper you’re are showing a loss or very limited income that cannot service the debt load with a new home loan attached. An extra 5K or 10k in income can mean the difference between qualifying for a home and buying the home of your dreams. As rates are still at record lows, and more people are coming into the fold from previous BK's and short sales, think hard an long about what you decide to show this year on your taxes. Contact Kyle and Shawn Cunningham or Dennis Schultz with Nova Home Loans for more details on these matters.