Turned Down for Cap One Auto Loan

[x2ski]

Hi All,

I hope this is the right place to post this but, if not, mods feel free to move.

Anyway, I applied for one of those "Blank Check" car loans from Capital One on Thursday and was approved; however, before I even requested the Blank Check, I wanted to make sure everything was in order, so I completed and faxed everything that was requested: 2 references, copy of driver's license and last 2 years' federal tax returns (self-employed poker player)

Today I received an e-mail asking me to call them because they had a few questions, so I called them with my 2005 and 2006 tax returns in front of me, ready to battle.

I was thrown off by why they decided to "withdraw" their offer. I thought it would be because a significant portion of my income is from poker and the rest from investments... Nope.

In 2005, I was still in the real estate business for the first few months of the year. I didn't make any sales, yet filed a Schedule C showing a total loss of ~$800 (various expenses). I made $61,000 from poker that year, and an additional $25k from investments. I didn't file a Schedule C for poker, but did the standard total wins on 1040 less itemized deductions on Sched A thing since it saved me $3,000 (self-employment tax and whatnot... for 2006 I did a Schedule C).

Anyway, according to Cap One, since I am self-employed, I technically lost $800 in 2005, and all other income is irrelevant. It's no big deal, since I don't NEED a car... I just wanted to trade in one of our honkin' SUVs for a more economical (fuel-wise lol) sedan.

However, my concern is this - The wife and I plan on looking for a house this fall. Is what Cap One did standard, or are we screwed for loans this year? (2007 - need 2 years' tax returns, so 2008 should be okay with '06/'07 returns)

I figure I can always amend 2005 and file a Schedule C for poker. I even suggested that to the Cap One dudes and they seemed all for it, but I don't want to shell out another $3,000 plus penalties right now just to get a new (used) car. If I must amend 2005 for a house, I will, but I wanted to run it by you guys first.

Thanks for any advice.