In case you are a self employed borrower seeking a loan modification, you will be required to undergo a different process of loan application from that of the salaried borrowers. But you don’t have to worry too much owing to that. The income requirements of both the salaried and self employed borrowers are the same. However, as the businessman’s monthly incomes fluctuate every month, a different set of loan mod application requirements is established for them. This is done because it is not easy to record altering incomes very easily. Let us find out more on this.
The business net earnings mentioned in your Profit and Loss slates will be regarded as your gross income
You will be required to provide your bank statements of the last three months
The Profit and Loss document provided by you must contain necessary information regarding the itemized business deductions, gross receipts of the business and your net earning thus derived
The business costs and your personal expenses in the RMA form.
Please take note:
Your deposits will also play a key role in signifying your incomes—- they will be availed for your Gross receipts on your Profit and Loss slates—- though they might vary a bit every month, an average will be computed
The Loan Mod Calculator
The entire loan mod process for self employed turns out to be more flexible if you exercise due discretion. Instead of providing your P&L straight away, you can take help of the Loan Mod Calculator to find out what is the acceptable income for getting approved for a loan modification. Then you can go back and adjust your business costs to reach the desires figures in the Profit and Loss slate. You can avail this facility while looking for loans online approval.
This will help you in adjusting the gross figures in place, as there are dangers of your application being rejected if the figures provided do not comply with the Waterfall or Debt Ratio guidelines set by the Bank of America.
While you are looking for the loan modification program for self employed borrowers online, you can avail the Profit and Loss Templates to get an idea of how you should present the same document.
Now that you have a fair idea about how to go about a loan modification program for self employed, if possible educate yourself duly on these kinds of programs. Know about the Bank of America guidelines in detail. Get online help in a bid to boost up your knowledge in detail. You cannot really conduct an offline market survey for the same as the whole process will be lengthy and time consuming. Check out the eligibility criteria; prepare a budget after computing the monthly income required for a loan modification approval. Thus you are set for a good deal ahead.
Author Bio: Author Ashley Jones has been a committed financial blogger since a long time. She has a number of informative articles on loans online approval.