Self-Employed

Guelph, Ontario – John could not stop thinking about the new child he and his wife were expecting in just 3 short months.

How the new house they had made an offer on the previous evening was going to be just perfect, with the extra bedroom for the baby, the larger more modern kitchen for his wife and of course the garage/workshop for his growing business
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His thoughts were interrupted by his cell phone which flashed the now familiar number of his Rob his local banker. He excitedly answered, placed the phone to is ear and said “John, here.”

“John, this is Rob.”

“Hi Rob, I have been waiting to hear from you. So do you have good news for me about my mortgage application?”

“Well John that is the reason for my call. It appears the bank has some concerns regarding your income.”. You are now self-employed and unable to verify enough income so you do not qualify for the mortgage under the terms as we discussed.”

“What does that mean?

“What it means John, is that under the current mortgage guidelines you will need to increase your down payment to 25% of the purchase price instead of the 15% we had discussed.

“That is another $60,000.00, where am I going to come up with that money?”

John heard little of the following conversation, his mind was now racing to find a solution to this new financial dilemma.

How we ever going to be able to come up with an additional $60,000 as a down payment?

His fledging business, while paying all the bills, had left little over for savings and he had depleted most of his savings just getting the business started.

The only funds he had available to purchase his new home was the proceeds of the sale of his current home and that was only provide enough to put 15% down and pay the closing and legal costs.

John dreaded the thought of having to tell his wife the bad news. She was as excited about the new home as he was and it was what his family wanted and needed. What could he do?

John suddenly remembered a guy he had played slo-pitch with who was a mortgage broker. Maybe he could help?

John hopped in his truck and sped across town to his house to get to his computer. A with a quick search on the internet was able to find the mortgage brokers website with contact information. Not sure if he could be helped buy he called him right anyways.

Within a few days his problems were over. The mortgage broker was able to find a lender who would accept John’s deposit of only 15% along with a very competitive interest rate.

Not many weeks later,John was standing in the modern kitchen in his new home, overlooking the spacious backyard. while his wife nursed his new son in the family room so grateful he made that call.