Lender pre-approved but won't grant mortgage.

[Tracy Cheetham]

Hi everyone, 

I'm in a hole. I'm self employed since 2016 and worked remotely. During the pandemic I took part-time W2 related project work to supplement the lost revenue during. During 2022 I focused on building my repeat business, and getting back to working with former clients. I'm getting a regular retainer now and have projects lined up and I'm getting back to my 2019 situation, only better. 

I'm really pissed at the lender because I explained my situation - over the past 3 years my income has been supported by my W2 related work projects. Now I know when you apply as self-employed - any W2's might as well be garbage. They only look at what your business brought in. When they ask - did you have other sources of income? I say yes - my W2 work. NO that does not count. It must be on this list, dividends, trusts, bonds, gifts, proceeds of sale of property.... everything under the sun. But no W2 employment counts. 

It's a really nice property, and it's my first home buy. It's going to be primary residence. I don't have 20% deposit - I was planning on the 3% down for first time buyers. With 3% down, I have cash for closing. I could manage 10%. More would leave me with Zero cash. No income loans are therefore probably not an option. (just learned about these)

What options are there? What would you do?

Thanks in advance for sharing your knowledge. 

TC