Self employed - sole trader and have accounts done by an accountant each year. BANK will not recognise these?
And demand them to be by a CHARTERED accountant as we are applying for a increase in our mortgage - which we have with them already. Plenty of equity in house. Chartered accountant said this is not normal practise. HELP!!!!!!
Renting & Real Estate - 5 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
which bank are you dealing with? all you should need is a CPA letter stating that you are in business for yourself for at least 2 years. Can you provide copies of your tax returns? or is the income that you claim on those returns not sufficient to gain an approval on your new loan? BTW, you cannot simply increase the loan amount on an existing loan. They will require that you take out a second loan or completely refinance.
Answer 2 :
Tell them you are going to change lender because of the problems. If you have a good repayment record they will be reluctant to lose your business. They have your bank account records, so they can see how much you earn! Play tough - make a lot of noise - speak to a high-up person etc etc . Good luck.
Answer 3 :
Well to clarify most bans haven't and won't accept returns prepared by someone other than a CPA. So if you have a book keeper or just a tax preparer that isn't really an accountant . All of the leeway that used to exist is gone so the best thing to do if you need the loan is to have a CPA review your returns and business statements and sign off on them. This is the normal practise. The only thing I can think of is that when you initially took out the loan they were able to do a reduced documentation or stated income loan so they didn't have to bother you for this, and now they can't so they are asking for full documentation. It is happening to thousands o self employed and 1099 borrowers across the country.
Answer 4 :
Crazy! I work for a mortgage company. We can use any tax returns- we verify the amounts thru a company called veri-tax which verifies that what our customer brought us is what they filed with the IRS. It costs like $30.00. We do this regardless of whether the tax returns are prepared by the customer or H& R Block or a Chartered (CPA).
Answer 5 :
If you have a lot of equity in you house have you considered an equity release scheme? There aren't for everyone but they sound like it might be worth you investigating.
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