Bank Loan Question
 

For those of you in the biz for awhile, and who have purchased homes, or other property, how intrusive is the bank into you 'business'? I mean, if you do nothing but websites for example, what do you tell them?

I'm guessing it's some variant of online consulting, or something along those lines but how much do they crawl up your ass on this? I've heard some horror stories from friends who've bought houses, and apartment buildings, etc and have told me about all the paperwork, and financials they've had to provide (comparing it to everything but a DNA or stool sample).

I'm surious as I am in the process of consolidating my place, and girlfriend's into a new house, and wondering just how bad they are going to bend me over, and stick it in with my main source of income coming from pornography. I do have a second business, but I am sure when they see the deposits, and all they are going to want to know where each source of money is coming from.

Any tips, ideas, suggestions on what you did, or have done in the whole process dealing with banks, or morgage brokers, etc??

Thanks in advance.

:pimp

When I went in and talked with a loan officer she said they would want the last 2 years of tax returns and that would be about it really since I was self employed and then had a S-corp the rest of the time.

Good to know.

I've heard the about the annual bank statement thing from my partner/investor for one of my companies. How he has had to provide stuff like that when he refinanced, or bought new property. But since he owns 15 properties, and a DJ business, as well as some other stuff he can more easily show, or tell them where the money comes from.

When you say anything in regards to internet, consulting, webmaster, media company, and so forth, I was just curious how much they would be asking as to the "how do you make money off the internet" and how far they'd be sticking the anal probe on exactly where the money's coming from.

If they generally only ask for your income statements, that's easy enough. Technically I own media company(ies), but I have heard some people, or business owners actually having to provide like client lists, or something to that effect. Which obviously would mean disclosing more than I would like to.

:pimp

**bump**

Anyone else?

you're fucked

Thanks for the "hot tip".

:1orglaugh

I just had to give them the 2 prior years of income tax returns. A hefty downpayment also helps ;)

The hefty downpayment's not a problem :winkwink:

I've heard banks don't bend you over as far if you have your 20%+ downpayment, versus some people who try and take out a loan w/ no money down, or less than the 20%.

I figure if I drop more than that, and have my bank statements (mine and hers) shouldn't be too much grief. I just want to get around the pornographer issue.

:thumbsup

Yeah, I put 20% down on mine and it was a breeze even being self employed for years.

Here's a trick - almost the minute you close on the house, take out an HELOC. There's no fee for appraisal since you have a recent one right there in front of you. This way if times DO get tough, you can tap into that w/o having to prove income all over again (and of course, if times get rough, you don't have a lot of income to prove....). I did this and it's nice to know that I can tap into that $$$ any time with nothing more than writing a check :)

When I bought my house I had to give them my "financial statements" and my tax reports from the last 3-4 years. My official company = Internet Consultant/SEO. They don't need to know what I do. The checks I receive from the sponsors = my clients.

That's it.

I got approved. But yeah, buying a house is a shitload of paperwork.. I didn't know how bad it really was.

Definately some good tips, and advice. Thanks you!

This will give me a good heads up on how to deal with all this stuff. Just wanted to be prepared, and see what some others in the biz did to side step all the porn questions, and so forth.

:thumbsup :thumbsup :thumbsup

20% and they dont give a fuck what you do
its a win/win for the bank. if you dont pay the loan off, they have a property they paid 80% for, with a higher resale value.

if you pay it off, then they got there intrest.

its just a tuff nut handing someone 40k lol

As long as you have good credit and a good income history they can't discriminate against the fact that you are in a particular line of work. However, I've heard that professionals such as doctors, lawyers and accountants are favored at the time of loan writing.

a hefty downpayment and they won't ask questions

I don't think I was ever asked what I did beyond being self employed.

They did ask for 12 months of bank statements when I first bought my house. They did that to verify steady income instead of tax returns.

That it is my friend :winkwink:

Luckily the gf has a house she is selling where she lives now, and is moving over here. She's had the house a good.. oh.. 10 years. Some she has some nice equity. Between the money/capital gain she gets for her house, and my chunk o' change, we are looking at putting about 50k down.

With a sizable downpayment, we are hoping they will not probe me on the "internet business", and her shakey credit history. If I had to drop more to avoid the questions and such I would, but at some point you want to put enough down to grease the wheels, while keeping your savings, and investment money intact.

:pimp