self employment and banks

[visual800]

Me too.
You: The IRS wants to know your GROSS to figure out taxes, lending institutions want your NET to loan you money. It would seem to me that banks could somehow "understand" how self employed taxes are done but I really dont think they have a clue OR they dont care since a lot of bank got hammenered when the housing market crashed.

Also You: also think of this they went back past 2 years and that bout when COVID was happening

You failed their stress test because your numbers were not good enough. Are they supposed to ignore bad years you had like there will never be another? Also, why would the bank care what your gross income was, it means nothing.

Well one thing that led me to my comment was my banker told me "We try to understand self employment a little better than most institutions"....Obviously not! If they try to understand self employment a little better than other banks than I guess I was a little taken back that if you see the credit I have and the money deposited in your bank that you would somehow see that we all do better than what is reported from tax records. When you sit dormant in same location for 35 years and try to build a home I guess I am shocked how things have changed over the years.

 

[netsol]

also think of this they went back past 2 years and that bout when COVID was happening....Not a chance in hell. As I mentioned I have damn good cpa and why not keep most of my own money, it seems like the govt doesnt know how to manage money very well, lol

and you know that is true. if you wasted money like our government, you wouldn't last a week

 

[Texas_Signmaker]

Well one thing that led me to my comment was my banker told me "We try to understand self employment a little better than most institutions"....Obviously not! If they try to understand self employment a little better than other banks than I guess I was a little taken back that if you see the credit I have and the money deposited in your bank that you would somehow see that we all do better than what is reported from tax records. When you sit dormant in same location for 35 years and try to build a home I guess I am shocked how things have changed over the years.

Unless your bank is keeping the loan in portfolio, which is very rare they don't have any leeway to how they work the loan. He said that to you just to get your business, like sign people saying "yeah I'll have it ready tomorrow". Loan brokers can make big money