Page 14 - October 2021 Issue.indd

The most extreme example is a person, Having a job is an absolute minimum business cannot be used for qualifying

or persons who are living with family requirement when considering taking purposes. The pandemic year of 2020
and not paying any rent, and they are on a monthly obligation like rent or a was ruthless in decreasing income for
purchasing a home where their monthly mortgage payment. If you are currently many small businesses. Th ose borrowers
mortgage payment will be $1,200 per unemployed or have had a sporadic will need to wait until their 2021 taxes
month, plus utilities that could add work history over the last several years are prepared and hopefully show an
another $150-$200 per month in buying a home will have to be put on increase in revenue.
expenses. This is significant payment pause. Having made job changes over
Some people who lost jobs due to the
shock. the last several years may not be an issue
pandemic took the entrepreneurial
if those changes resulted in improving
Someone with very little, if any, savings leap to self-employment and started
your career path, higher salary, better

after closing will potentially start their their own business. For them, the

benefits, opportunity for advancement.
homeownership experience under homeownership clock got set back two

financial strain, depending on how much To be qualified for most mortgages, self- years until two full taxable years for the

income they have. Yet someone with employed borrowers must have been in business can be provided.

$5,000 in the bank after closing will have business for at least two taxable years. W-2 employees’ income is much easier
those funds available to help cushion And for most programs if the business to document because it is an established
the blow, or help adjust their monthly had a decline in revenue in excess of 20% hourly rate or salary. Overtime
budget to these added expenses. year to year, then the income from that
and bonus earnings can be used for
Dave’s David Grinavic, qualifying if it has been earned for at
least the last two years with the same
ASE Master Technician employer.
Riverside 32600 Main St.
Queen Anne, MD 21657 It is not always necessary to have been
Garage, Inc. 410-364-9336 employed for the past two years if you
were a full-time student immediately
COMPLETE AUTO REPAIR & MAINTENANCE prior to your current job. Being a
full-time student and working in a
• Computerized Engine Diagnostics Oil & Filter Change career field in line with your degree or

• Performance Tune-Ups up to 5 quarts of oil (most cars) certificate can be substituted for two
• Front End Alignments years of employment. A recently hired
• Brakes • Shocks • Electrical Repairs $ 95
• Battery Replacements • Mufflers 25 + tax school teacher just out of college is a
• Tires (Rotate and Balance) prime example of this.
• A/C Service • Exhaust Systems MD State
$
• Lock-Out & Jump-Start Service Inspections 60 Paying heed to these suggestions and
• And more!!! using them as a guide should provide a
good foundation for anyone preparing
to purchase a home. A consequence of
following these suggestions will also
serve to make you a more desirable risk
for a landlord to consider.
Remember to get a preapproval from
a lender like me who offers financing
Because you deserve qqualified, llocal representation utilizing all the various programs for fi rst
when managing life’s important issues. time buyers, and most importantly can
explain the reasons why a particular loan
? ESTATE PLANNING program works best for your particular
situation.
? RESIDENTIAL & COMMERCIAL 300 Market Street
Suite 104
REAL ESTATE AND SETTLEMENTS Denton, Maryland Mr. Rowe is Vice President/Lending for
? LLC FORMATION & BUSINESS LAW 21629 Bay Capital Mortgage Corp. with offi ces
in Easton and Annapolis. He has lived in
? MUNICIPAL & ENVIRONMENTAL LAW Caroline for his entire life and supports
? GENERAL LEGAL COUNSEL 410.310.1774 the county by volunteering in a variety of
Our attorney, Patrick Thomas, and our Settlement shayman@mlg-lawyers.com ways. He currently lives near Greensboro
Agent, Sandy Hayman, are available to travel to your www.mlg-lawyers.com with his wife Jeanne and daughter Kelsey.
preferred location.

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