View Single Post
Old 05-29-2011, 05:50 AM  
rowan
Too lazy to set a custom title
 
Join Date: Mar 2002
Location: Australia
Posts: 17,393
Quote:
Originally Posted by arock10 View Post
Also, what always catches my eye in your threads is the mention of getting a million dollar mortgage. Most people aspire to getting a million dollars or some other concrete amount. Do you have an above 740 credit score? There are many factors that go into getting a mortgage and it's not just cash on hand or income. As someone self employeed, you'd need 2-3 years of consistent increasing income reported (I'm just assuming you live/want a mortgage in the US). So even if you got your extra couple sales a day or whatever, you'd need to sustain this for a couple years to qualify. You'd need a rather large credit score to qualify for a jumbo mortgage and 20%+ for a downpayment (so $200k+).
So maybe you should lower your goals some
There's no credit scoring system in Australia, but the bank would still need proof of sufficient income over the medium term (eg two years worth of tax returns). Interest rates are around 7.5% (roughly) which means he'd be paying $1500+ a week just to cover interest, even more if it's a P+I loan. The bank isn't going to give him a loan where roughly 80-90% of his gross income goes towards paying the mortgage.

Hey Graham with all this fast cash you're making are you remembering to pay tax?
rowan is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote