Hi, I live in Singapore and working full time as an iphone app developer as an individual. I recently made a purchase of a property. Applying for the mortgage at a local bank, I submitted them my financial reports (iTC reports) and my bank statements that shown the exact amount being deposited in.
The problem is, the bank is a bit fussy, and requires me to produce some kind of official document stating that I am bound to Apple as an App developer.
How can I get such documents? Who do I write to? Any email address or such? And, if the bank request for a contact number, can I just give them the Apple's California HQ number?
Any advice is appreciated. If the mortgage is rejected, I'd be losing some amount of the deposit...
Hi, I live in Singapore and working full time as an iphone app developer as an individual. I recently made a purchase of a property. Applying for the mortgage at a local bank, I submitted them my financial reports (iTC reports) and my bank statements that shown the exact amount being deposited in.
The problem is, the bank is a bit fussy, and requires me to produce some kind of official document stating that I am bound to Apple as an App developer.
How can I get such documents? Who do I write to? Any email address or such? And, if the bank request for a contact number, can I just give them the Apple's California HQ number?
Any advice is appreciated. If the mortgage is rejected, I'd be losing some amount of the deposit...
Thank you.
I think the problem you have is that the bank thinks that you are an Apple employee?
I think you should register as self-employed or even incorporate a company, that way it's easier to get the relative documents and accountancy ready.
But I know nothing about how it works in Singapore, so good luck with that!
Applying for a Mortgage While Self Employed (Especially in 2011) is very hard task. Your Considered Very High Risk. If you can maintain a credit score of 750 minimum You stand a chance, anything under 750 Fico forget it,
Applying for a Mortgage While Self Employed (Especially in 2011) is very hard task. Your Considered Very High Risk. If you can maintain a credit score of 750 minimum You stand a chance, anything under 750 Fico forget it,
this
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Maybe in the meantime you could submit copies of all your contracts with Apple. Tell him that they say what he wants and he is probably too lazy to read them himself.
You should clearly mention it on letter that you are a self employee and aware about this to your bank, after this I don't think so that you should have to face any problem..
Usually for mortgage applications if you are self employed they just need to see your prior couple year's tax returns. It's no more risky than being employed.
If it's really a big deal just set up a corporation, pay yourself a salary (using a payroll provider) and send yourself a W-2 (or whatever it is in Singapore). Then from the bank's perspective you are employed.
Usually for mortgage applications if you are self employed they just need to see your prior couple year's tax returns. It's no more risky than being employed.
It's much more risky from the bank's point of view. Anybody can walk into the bank and say "I'm self-employed". If you work for a large company the bank can contact the company and verify who you are. If you are self-employed you could be anybody doing anything.
Enrollment in "Apple's program" or having an app in the appstore means nothing. Today you are enrolled, tomorrow you are not. It means nothing to the bank. From the other side if you worked for Google for last 10 years, it's highly unlikely that Google will go bankrupt or you get suddenly fired (and won't be able to find another job quick enough).
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If it's really a big deal just set up a corporation, pay yourself a salary (using a payroll provider) and send yourself a W-2 (or whatever it is in Singapore). Then from the bank's perspective you are employed.
W-2 doesn't matter. Many banks would ask you if you own any significant part of the company and if you say "yes", then they will consider you self-employed. The W-2s won't help. Anybody can enroll himself on W-2. The bankers weren't born yesterday
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It's much more risky from the bank's point of view. Anybody can walk into the bank and say "I'm self-employed". If you work for a large company the bank can contact the company and verify who you are. If you are self-employed you could be anybody doing anything.
that's where the tax returns come into play. If you can show consistent revenue it's no different than showing a consistent salary.
If your taxable income is $100K, the source doesn't matter. I mean, even if you have a job, you could get fired or laid off, so what matters is your recent employment/revenue history. At least that is what my mortgage broker said to me a few months ago =)
that's where the tax returns come into play. If you can show consistent revenue it's no different than showing a consistent salary.
...
Yes, of course, tax returns mean a lot. But still everything related to credit is much harder if you are self-employed..
The other argument they bring up is: if you are a businessman, then how come you can't pull out cash and pay 30% (50%-70%) of your mortgage? If you can't, it means the business isn't going good, right? If so, then you are a high risk borrower.
Since I became self-employed even renting an apartment became problematic.
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My scores are all over 800, i had $25K to put down, and i was still declined for a mortgage.
reason was my tax returns show low income (the whole benefit to being a sub-s corp). i've had my corp for the last 25 years.
Then of course, my neighbors, who both work at mcdonalds, have a $300K home under foreclosure. they have been living rent/mortgage free for 3 years now.
so those of us who were smart enough to NOT buy during the bubble, are responsible, educated and hard working, can't get a mortgage.
I don't feel sorry at all for these banks that get screwed on their loans.
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My scores are all over 800, i had $25K to put down, and i was still declined for a mortgage.
I don't feel sorry at all for these banks that get screwed on their loans.
That's great. I lived in San Francisco and if I buy a house, I think I need a down payment at least 50% and with the house price of $800K. It come down to $400K
That's great. I lived in San Francisco and if I buy a house, I think I need a down payment at least 50% and with the house price of $800K. It come down to $400K
Where are you that need only $25K?
He said he had $25k for a down payment and he was refused
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I say if you are self-employed you need to put down 20%-30% at least and still the bank may deny the mortgage if they believe that the house's value is (or may become in the near future) lower.
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Show your past 2 years tax returns and your business license (LLC, Corp, or anything). Also they will want all bank statements for the past year or two as well.
You will have a higher interest rate, no doubt. Bank will consider you higher risk. Credit score will need to be well above 700+ FICO and a 20% down payment at least.
Also, $0 debt, and own some assets in full like some cars. No liens of any kind (tax or otherwise).
Anything less than what I said above and you will most likely get denied. Getting a mortgage is very tough in today's economy.
Trouble with Mortgage Application.. Proof of Job
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