Went to school, got licensed, making money...how would an underwriter view you? (loan, pre-approved)

[TheEarthBeneathMe]

My wife was pre-approved (she has better credit, I didn't have a job at the time) for a zero down mortgage, but now I'm nervous about how an underwriter will view us (her) since we were both students getting our nursing license for the past year.

Prior to nursing school she worked for a home health agency for 1.5 years as an unlicensed caregiver...then entered nursing school, and has only a few (3) months of employment history as a nurse.

We're only after a $75,000 loan, her credit scores are between 711 - 740, and what she makes in one week is enough to pay off the estimated mortgage payment.

So my main concern is - how do underwriters view students who have recently graduated and are now earning an income? Right now we're staying with family, which is taking it's toll, and the monthly payment for the house we want is half of what we we're looking to spend in rent.

...any ideas? I'm getting very nervous!!!!

[ShanetheMortgageMan]

Didn't the underwriter review the employment situation as part of the pre-approval process?

Regardless, since you obtained a degree/diploma via a professional school and immediately entered into a career that was related to it, 99% of underwriters will just require a copy of the graduation diploma and a paystub reflecting at least 30 days of pay.

[TheEarthBeneathMe]

Originally Posted by ShanetheMortgageMan

Didn't the underwriter review the employment situation as part of the pre-approval process?

Regardless, since you obtained a degree/diploma via a professional school and immediately entered into a career that was related to it, 99% of underwriters will just require a copy of the graduation diploma and a paystub reflecting at least 30 days of pay.

A big part of the story I left out is that we just moved to another state (to be close to wifes family). So she was employed less than 30 days (barely a week, in fact..) while we were doing the process. The LO just requested a letter from her work stating pay rate, date started, number of hours per week, that it's a permanent position, and then a pay stub once she receives her first check.

We filled in the gaps between unemployment - approximately 45 as being a relocation period. The bank statements should show both of our checks coming in together, hopefully that will show that we can more than afford the loan.

Is it common for conventional, zero down arm mortgages to be denied after being pre approved? I've done a lot of research and mainly see fha loans...?

[VictorBurek]

Originally Posted by TheEarthBeneathMe

A big part of the story I left out is that we just moved to another state (to be close to wifes family). So she was employed less than 30 days (barely a week, in fact..) while we were doing the process. The LO just requested a letter from her work stating pay rate, date started, number of hours per week, that it's a permanent position, and then a pay stub once she receives her first check.

We filled in the gaps between unemployment - approximately 45 as being a relocation period. The bank statements should show both of our checks coming in together, hopefully that will show that we can more than afford the loan.

Is it common for conventional, zero down arm mortgages to be denied after being pre approved? I've done a lot of research and mainly see fha loans...?

The only way to get a 0 down payment mortgage is through a VA loans which are for veterans or a USDA loan which is used on homes mainly in rural areas. What type of loan are you doing?

[TheEarthBeneathMe]

Conventional, 30 year arm. Rate is about 4.125 for first 10 years, then will jump but has a ceiling of
around 10 percent. This is through a small local bank the realtor recommended once we explained our situation. I am not a veteran and the home is in the city.