Getting Mortgage Help from a Company That Understands the Contractor Business

The first thing banks want to see are your tax returns, pay stubs and employment history if you want to get a mortgage. I work for myself as a general contractor. I have a state license, and I work about nine months out of the year. I take about three months off in the slow season. I can afford it. My wife and I are not wealthy, but we are not hurting either. Our bills are paid and we have retirement savings. However, I went and looked at contractor mortgages because my bank seemed to be concerned about the months of no income every year. That does not make any sense to me.

If I worked for an employer and got a month of vacation, they would probably not have any trouble with that. However, my pay stubs would show steady income as vacation pay over that time period. I guess the idea of taking three months off with no income is scary. Teachers get a lot of time off during summer break, but I guess they still get regular paychecks. I thought the bank would be smart enough to figure my annual income versus my liabilities and not be concerned with the three months I go without pay. Apparently it must appear to some on paper that I am unable to earn money during that time period. I could earn year round. I choose to take the time off, and nothing goes unpaid. I guess it is all in the interpretation of income generating ability based on the financial institution's perspective.

When we went to a place that offers contractor mortgages, we had less of a time getting them to understand how I generated income from my home construction business. It does help to have people that cater to a specific type of self-employed worker.

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