Starting a Business: Review Your Mortgage
I connected this morning with Tyler Osby of Four Legacies Mortgage. I met Tyler through Twitter (you can follow him @tylerosby). I have been impressed with the breadth of information he provides. He uses Twitter in a very meaningful way by acting as a resource on the mortgage market.
Tyler brought up a great point today during our discussion. When someone starts a business they must demonstrate at least TWO YEARS of verifiable income, assets, credit history and tax returns before the new business owner will be able to get a new mortgage. It's something I've always known but never really discussed much with clients when they are forming a new business.
So if you are planning to start a new business be sure to review your mortgage interest rate. Otherwise, it may be a couple of years before you can do much about it.
Rush,
Thanks for posting on this. It's really near and dear to my heart because a lot of business owners think that their home equity is 'safe money' that they can access any time.
The truth is, your money is available IF you qualify. Anymore, you have two have two years in the business before you qualify. Also, most businesses don't show a huge profit in the beginning - so think twice!
Thanks for mentioning this. It's great advice!
yes i learned this the hard way when trying to get a second mortgage for a rental property. and then when i tried to get a home equity loan for my current house. and then when i tried to get a personal loan for home improvements... no one will loan a new business owner money in this econonomy.