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Old 10-03-2013, 02:49 PM
 
3 posts, read 5,332 times
Reputation: 10

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Hello,

Here is some background information:

I was laid off from my job in engineering three and a half years ago. During this time I did not go to school, but I studied electrical engineering on my own. I bought the books and did the work for seven courses that are in the junior year of college. I also studied networking, computer programming, CAD, and then I designed, machined and built a computer-controlled machine out of metal. I really advanced my knowledge. I already had a B.S. degree in mechanical engineering before this.

So, I looked for work while on unemployment and then I lived off my savings afterwards. While living off my savings, I designed some robotic products that I want to manufacture. I also set up a machine shop. Basically, I laid the ground work and completed about 70% of a business startup idea. I want to finish the idea, but I ran out of money for now. So, I looked for work again. This time, I had to do whatever it took to get work.

When I applied for work nobody wanted to hire me. They didnít believe that I studied and worked and increased my technical knowledge significantly. So, I lied about where I got my experience and I got hired right away. My experience is all true though. I have been on the job for a couple months now and they are extremely impressed with my knowledge, abilities and hard work. I can make things happen for them. I will soon surpass some of those who have been working there for ten years and have trained me. My work history, my current job, and my business startup idea all use the same technology. Lastly, my pay is around 55-65k. Itís modest for what I do.

Here are my questions:

1. How long do I need to be employed with good future prospects before I can get a mortgage? I want to get a multifamily rental property and have housemates so that a positive cash flow is easily generated. I can easily do all the repair work, from electrical, plumbing, wood working, etc. I also have about four years of experience managing the rental unit I currently live in, selecting good tenants, and paying the entire three bedroom rent plus all bills.

2. Is there a chance the mortgage broker will spill the beans? I am assuming the mortgage broker is going to call my work to see how I am doing. Is it likely that s/he might say, ďMr. Smith was unemployed before working for you? Are you sure you are satisfied with his current work and his future prospects?Ē If the company finds out I lied, they may fire me. Since they donít know I was unemployed, should I just tell the mortgage broker the whole story? S/he can then assess the loan risk based on the facts. In any case, I will never buy a property that cannot pay the entire mortgage with tenant rent alone.

Any advice will be much appreciated! Thank you.
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Old 10-03-2013, 03:24 PM
 
Location: Mount Laurel
4,146 posts, read 8,395,935 times
Reputation: 3410
Quote:
Originally Posted by LizardBreath View Post
Hello,

Here is some background information:

I was laid off from my job in engineering three and a half years ago. During this time I did not go to school, but I studied electrical engineering on my own. I bought the books and did the work for seven courses that are in the junior year of college. I also studied networking, computer programming, CAD, and then I designed, machined and built a computer-controlled machine out of metal. I really advanced my knowledge. I already had a B.S. degree in mechanical engineering before this.

So, I looked for work while on unemployment and then I lived off my savings afterwards. While living off my savings, I designed some robotic products that I want to manufacture. I also set up a machine shop. Basically, I laid the ground work and completed about 70% of a business startup idea. I want to finish the idea, but I ran out of money for now. So, I looked for work again. This time, I had to do whatever it took to get work.

When I applied for work nobody wanted to hire me. They didnít believe that I studied and worked and increased my technical knowledge significantly. So, I lied about where I got my experience and I got hired right away. My experience is all true though. I have been on the job for a couple months now and they are extremely impressed with my knowledge, abilities and hard work. I can make things happen for them. I will soon surpass some of those who have been working there for ten years and have trained me. My work history, my current job, and my business startup idea all use the same technology. Lastly, my pay is around 55-65k. Itís modest for what I do.

Here are my questions:

1. How long do I need to be employed with good future prospects before I can get a mortgage? I want to get a multifamily rental property and have housemates so that a positive cash flow is easily generated. I can easily do all the repair work, from electrical, plumbing, wood working, etc. I also have about four years of experience managing the rental unit I currently live in, selecting good tenants, and paying the entire three bedroom rent plus all bills.

2. Is there a chance the mortgage broker will spill the beans? I am assuming the mortgage broker is going to call my work to see how I am doing. Is it likely that s/he might say, ďMr. Smith was unemployed before working for you? Are you sure you are satisfied with his current work and his future prospects?Ē If the company finds out I lied, they may fire me. Since they donít know I was unemployed, should I just tell the mortgage broker the whole story? S/he can then assess the loan risk based on the facts. In any case, I will never buy a property that cannot pay the entire mortgage with tenant rent alone.

Any advice will be much appreciated! Thank you.
That's not how employment verification usually work. Most company uses 3rd party employment verification to for dates. Your bigger issue is lying in your employment application. At some point, it may come back to haunt you. You know the folks you are surpassing? Don't let them find out..
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Old 10-03-2013, 06:25 PM
 
3,321 posts, read 7,263,103 times
Reputation: 4105
You cannot instantly claim cashflow. You must have a documented history of Rental Property Ownership on prior tax returns, and even then, there are required equity positions involved.

You will be held liable for the entire home payment, plus taxes, insurance and HOA, against other debts and your income.

You will need to be verifiable at full time 40 hours a week. Overtime will not be allowed as you do not have a 2 year history.

The bank will contact your employer's HR department to confirm this, and the viability of continued employment. You must be employed through the closing date.
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Old 10-03-2013, 06:37 PM
 
Location: Brentwood, Tennessee
39,124 posts, read 37,766,222 times
Reputation: 73828
Sometimes the real question is not CAN you but SHOULD you.
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Old 10-03-2013, 06:45 PM
 
Location: New York
2,251 posts, read 4,165,174 times
Reputation: 1607
..


Mortgage company's are going to look back at two years of working in the same job field (with no large gap's in employment).

Your knowledge - have you every considered having your own company?

Being self employed and applying for a mortgage, income is supported by deposits into your checking account.

Banks require two year full tax returns? Many people think that it's the last two year to date. In the past have originated many loans with tax returns from two to three or three to four years prior. Many business owners have to file extensions.

Banks calculate self employed income off the previous 12 months of bank statements, looking at the past year total income divided by 12 to show average monthly income. This will be supported by a profit and last statement done through an accountant or tax preparer. Compared to a W2 worker - the total income is looked a by the pay period end date and dividing the work week into the YTD income, to equal the monthly average income. My firm works with over 100+ lenders, everyone does this way for income calculation.

When you get your self financially organized, I recommend not apply for a mortgage directly with a bank because your situation is complicated. Your best option is working through a loan broker, that is knowable and has connections to many lenders.

I can also emphasize with your background and "jack of all master at none education"....lol

You don't have to lie tell the truth and your life will be easier. Applying for jobs, on your cover letter discuss your "well rounded" education and bullet your accomplishments.

Sell yourself to your total knowledge and why a company should hire you. What employers are looking for is the experience in you for their profit in them. On a (1) page resume top down describe your objective, summary of your accomplishments, the detailing your work history relating to the position you are applying for. List eduction at the bottom, listing the mechanical degree last.

30 years ago completed 9 months at a technical school for mechanical-electronic diploma. Later receiving technical writing and QA/QC inspection certifications. Stated at an university taken most of the pre req courses for a mechanical engineering degree including machine shop, Auto-CAD and CNC. The end of the 80's the government cut back on the defense contracts. Mechanical Engineers were a dime a dozen out of work. I saw what was going on with the economy and switched over to a business degree. Normally taken 120, it took me 148 credits to earned my Bachelor's.

Became interested in computers in the mid 90's to the point of buying and upgrading to a new computer every year. In 2006 completed a 9 month 16 hours a week CompTia A+ certification in computers. The following year another technical school for my Cisco CCENT.

My main focus over the last twelve years has been with mortgages. The technology today takes less than 30 seconds to be on a remote computer via the internet. I have a subsidiary company been repairing computers, especially for many of my modification clients at no charge. The hours spent on their computers is a billable expense, use as a tax write off for my LLC. Additionally making a little money through affiliate advertising on my websites. I sure there are many others that share their educational and experience to what made them who they are today.

The propose of college degree is proving to the world you know how to think and know about what you are doing. The problems many are facing around the country, school doesn't teach skills how to think outside your box.

The secret of being successful in life is when you are younger, building a portfolio of different sources of income that will support you when you are older.


Sorry got off post topic.

Good Luck...


.

Last edited by Modification Specialist; 10-03-2013 at 06:58 PM..
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Old 10-03-2013, 09:54 PM
 
3,321 posts, read 7,263,103 times
Reputation: 4105
GD.

"First the Earth cooled......"
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Old 10-04-2013, 04:56 AM
 
Location: new York city,USA
1 posts, read 2,301 times
Reputation: 10
Search the Internet for an online mortgage company. There are several types of lending companies: direct lenders who only fund their own loans; referral services that only refer you to the best company to fit your loan needs; brokers that search out the best deal and process your application; and mortgage auction sites that solicit bids from lenders based on your profile and identify your needs.
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Old 10-04-2013, 06:50 AM
 
Location: MID ATLANTIC
7,604 posts, read 17,643,477 times
Reputation: 8089
Any lender will verify your past two years via tax returns and W2s. Until you show two years with your current employer, you may be stuck. If had been able document a year of additional education (transcripts), the lender would have treated the schooling as employment.
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Old 10-04-2013, 11:12 AM
 
3 posts, read 5,332 times
Reputation: 10
Thank you all for the intelligent and well thought out advice!

Will the following change the picture?

When I get to one year of work for my current company, will $60,000 down on a $400,000 2-1/2 or 3 family entice a lender to give me a mortgage? Income is in the $55-65k range now with a credit score above 800, including 5 years of verifiable rental management experience. For four years, I have been collecting rent and bills for a 3 bedroom and paying the $1400 rent to the current landlord. I find the tenants, set up the tenancy at will, and pay the other bills. I also know how to set up the eviction paperwork if it should be needed. I plan on having roommates live in my own place with me, and of course renting the other two floors if that helps get a loan. I can easily do the electrical, plumbing, roofing, woodworking, etc. I have also fixed everything on my own cars over the past 15 years to save money. Keeping myself financially viable is easy. I will only get a property that pays for itself entirely or produces positive income monthly. My experience has shown me how to market the rentals and find good tenants. How come banks don't see this as a very workable business plan and grant a mortgage?

Any thoughts will be appreciated!
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Old 10-07-2013, 05:42 PM
 
Location: Vermont
5,439 posts, read 14,339,187 times
Reputation: 2609
So you put down that you had a job that you didn't have? That's a little rough, not a stretch of the truth but an outright lie. If this is the case I think it would be UNWISE to repeat this to ANYBODY!

If you apply for a mortgage, they are not going to shoot the breeze with your current employer about where you previously worked.

Working where you are until you don't need to mention the prior employer might be required anyway if you have been jobless for a while.
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