THE SCENARIO
This self employed borrower was successful by every measure. Thriving business, beautiful family, loving wife. When his family situation changed, he needed to buy a larger home—and quickly.
THE PROBLEM
While his business had grown year after year, the most recent year told a different story. Profits dropped sharply, and he knew his upcoming tax returns would reflect a significant loss. Based on current financial statements alone, he wouldn’t qualify for a mortgage with most lenders.
THE STRATEGY
Working closely with his CPA, we placed both his personal and corporate tax returns on extension. That avoided having to submit last year’s returns—but there was another hurdle.
Most lenders would still demand a recent P&L and balance sheet, which would kill the deal.
This is where experience matters.
I explained that this loan wasn’t about chasing the “best rate.” It was about choosing the right lender—one with a process and guidelines that allowed us to leverage strong income from prior years without requiring last year’s damaging financials.
I’ve seen this hundreds of times: borrowers shop rates, pick the wrong lender, get denied—and not only lose the home, but lose the rate they thought they locked in.
THE RESULT
Because we structured the loan properly and matched it with the right lender, the loan was approved smoothly, the borrower still received a competitive interest rate, and he closed without issue.
Had he focused solely on rates or gone elsewhere, this transaction would have been denied—and his family would have lost their new home.
THE BOTTOM LINE
Everyone wants the best rate. What many don’t realize is that rates are affected by many variables such as credit profile, loan to value, property type, and usage. With the right mortgage professional, proper guidance, and strategic planning, the odds of success increase dramatically—and costly mistakes are avoided.
If you or someone you care about is planning a move (even months from now), let’s talk! Early conversations matter more than most people think.
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Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.
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