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My brother was just unemployed 2 months ago and been on his job for about 5 weeks and was able to get a mortgage? I thought that you had to show financial stability to get approved for a house by being being employed for atleast 5 years in a row? Even if that was not the case why would someone want to make a decision like that and don't even know how stable their new job is?
Me and my mom does not understand his decision at all to jump to a house right unemployment.
banks are getting stricter and stricter about income requirements . many of the company's that buy these mortgages have increased their requirements for loans and will not buy mortgages without a proper work history .
in fact we are retired and have multiple 7 figures in our portfolio . no bank can say if we would be approved or not for a mortgage should i decide not to pay cash for a co-op unless i file for social security now and not delay it .
they all said it will be up to the underwriters to decide if they can do a mortgage or not without a steady source of income outside of our control .
no one here can tell you what the underwriters require for time on the job .
When I bought my home, the bank said they required at least 6 months of being employed consecutively. I worked at a bank 2 years and it seems they look at much more then just the job. Perhaps he has great credit history and his previous employment has been very steady.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Originally Posted by Icemodeled
When I bought my home, the bank said they required at least 6 months of being employed consecutively. I worked at a bank 2 years and it seems they look at much more then just the job. Perhaps he has great credit history and his previous employment has been very steady.
Yes, they are looking at the risk, and if he was employed well before, and this job is similar to what he did before there is not reason to think he will fail. If there is a big enough down payment, the risk is minimal since they can sell it for enough to cover the loan if he does default.
Not very likely. Most of them will want to calculate his average income based on his pay from the past 24 months.
Of course every situation could be different - great credit, big down payment, other assets are a plus. A letter from his employer stating that your brother have passed the probationary period may give the lender more confidence in his income.
His job matters because lenders want to compare his monthly house payments (incl. mortgage, property taxes and homeowners insurance) to his pre-tax income to decide the loan amount he can handle. Hourly employees are under the tightest microscope when it comes to getting a mortgage.
If his job by itself doesn't satisfy the lender, he may be able to improve his chances of approval by taking on a co-borrower with a more stable job history (someone who will be moving into the house with him).
Do you brother KNOWS how much money he would need UP FRONT to buy a house?
Go with a private mortgage, my sister got a mortgage on the day she got laid of. Also the previous two years, her income was on/off, it's how you sell yourselves. I got involved because she was so stressed out, they were going to denied her, but after talking to a private mortgage company,I helped her rearranged her ratios, and she was able to get her loan approved. She did put down significant down payment, more like 40-50% down payment.
Go with a private mortgage, my sister got a mortgage on the day she got laid of. Also the previous two years, her income was on/off, it's how you sell yourselves. I got involved because she was so stressed out, they were going to denied her, but after talking to a private mortgage company,I helped her rearranged her ratios, and she was able to get her loan approved. She did put down significant down payment, more like 40-50% down payment.
Why would her getting laid off on the day of closing matter at all? How would the mortgage company have even known? Unless she told them which is silly. I also don't understand how you would have helped, rearranged ratios on the day she got laid off, unless you are confusing got a mortgage with got a preapproval
My wife changed jobs after the preapproval process and the lender asked for the new offer letter and the first pay stub at that was it
OP, the bank will look at the last two years tax returns, last two months pay stubs, last two or three months bank statements, net worth, total debt load, and length of time employed in their current field.
So, if your brother had a decent income the last two years, a decent credit score, a decent net worth, bank statements that were consistent, reasonable length of employment at his last job (usually two years) and is currently employed in the same field at about the same or higher pay, the couple months unemployment would likely not be a significant problem for the underwriters, given everything else was in order.
Why would her getting laid off on the day of closing matter at all? How would the mortgage company have even known? Unless she told them which is silly. I also don't understand how you would have helped, rearranged ratios on the day she got laid off, unless you are confusing got a mortgage with got a preapproval
My wife changed jobs after the preapproval process and the lender asked for the new offer letter and the first pay stub at that was it
We warned the company that it was a possibility and they verified her employment a week early. But for me and my husband they called and verified 2 hours before the loan is closed.
The rearrange the ratios was way ahead of her closing. Sorry it was not clear.
My sister didn't have a job lined up.
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