Two jobs lost in 2 miles!

General Inspection Topics General Inspection Discussion
1

I lost two jobs today, in 2 miles cause of bank nonsense.

I was going to do an inspection tomorrow when I returned to Nashville from ITC training because of a big rush put on closing by the bank.
Well, everything was approved and ready to go after major card shuffling. The client (I had inspected for before) qualified for the loan everything was a go.

It was a $300,000 home that the bank was selling for $200,000 and my client had $100,000 cash.

The bank retracted the loan at the last minute because the wife was self-employed and they will not loan money to self-employed anyone!
We spend billions of dollars to bail out the damned banks! They have so much trust in entrepreneurs (that they will in fact fail) they have elected to not loan 50% of the two thirds value of the property.

The phone call interrupted an advertisement by a bank company offering 5% 30 year fixed mortgages (come and get it)!

This bail out stock is just a bunch of hocus-pocus, sleight of hand.
A primary example of the non-trickle down effect of billion-dollar bank bailouts!

The other inspection was rejected because the bank retracted the 13 day inspection. To, two (and I won’t be back yet).

This gives me a great sense of hope in the administration!

2

That’s insane! Do you know if it was a bank that got some bailout money or a smaller one?

3

I wouldn’t even know how to define “self-employed.” Most 1-person businesses are not sole proprietorships anyway, they are corporations. www.nachi.org/inc.htm

4

The new bill was only signed 2 days ago, I’m sure nothing has actually went into action yet.

And if it was a $300,000 home that the bank was selling for $200,000 that would make it a $200,000 home.

I am sorry you lost the inspections, banks can be, well you know.

5

I just got a loan for another rental property. I’m self employed, my wife doesn’t work. I would bet dollars to donuts that the self employed person was trying for a No Docs loan that was all too common during the busy times. Self employed isn’t the problem, lack of records is. They won’t do No Docs anymore, even with that large of a down payment.

And this would have nothing to do with the bail out or this administration. Fannie and Freddie won’t buy mortgages without documentation now.

6

What docs do you give them?

7

Documentation of income that can be verified. When making business deposits, always use carbon copy deposit slips that use identifying client names instead of bank numbers. They will print the deposit info on the copy and hand it back to you. Those deposit slips are attached to the monthly bank statement. I scan them and keep those copies on CD, by month and year, in the safe deposit box.

Since you are in Washington and use ICN’s, I keep an excel spreadsheet of my ICN useage. It includes the ICN, date of inspection, client name, property address, vacant or occupied, the fee and the deposit transaction number. That is kept by day, month and year, saved on disk and kept in the safe deposit box.

For those jobs that are not issued ICN’s, they are kept in date order within the same spread sheet with the same format.

Outgoing expenses are kept on another spreadsheet by date with the carbon copies from the checkbook and the receipt attached.

Mileage is kept daily in my day planner and moved to the expense sheet at the end of each month.

That is for the business. The same is done for each rental property and each investment account whether it is a checking account, IRA, 401k or stock trading account.

Then there are the income tax files. All kept on the computer with back up in the safe deposit box. I have them since I did my first return by computer in 1993.

I scan everything and updated files are available for email purposes in a few minutes. When the bank or underwriter asks for something, I can email the whole packet of files and it is done.

Record keeping is a pain but in the long run, it pays off. Some use tax accountants and pay dearly for the service. I prefer to keep my finances private and under my control.

Now that I’ve written this down, I need a drink.

8

That’s pretty damn close to exactly what I do. However, I haven’t applied for any type of loan since I became self employed and was curious what type of documentation they require. Looks like you just send them whatever you’ve got huh?

9

It’s not just a matter of sending them docs. Underwriters can be a ROYAL PAIN IN THE *****. But when they see the spread sheet, backed by the deposit slip, backed by the check copies, backed by the bank statements and those correspond to the tax return, all in order, they usually don’t make it past the first month or two of records and just go by the 1040.