Is it possible to get a mortgage when you are just starting a new job?

[Lowexpectations]

Originally Posted by NewbieHere

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.

It would be extremely odd that employment would be verified the day of closing.

Letting the mortgage company know ahead of time you may lose your job makes no sense either

[NewbieHere]

Originally Posted by Lowexpectations

It would be extremely odd that employment would be verified the day of closing.

Letting the mortgage company know ahead of time you may lose your job makes no sense either

Exactly, we were horrified. But I think, not closing but before they generate the loan document. Nobody warned us so I made sure it didn't happen for my sister.
I was worried that I would loose the interest rate lock.

[Caltovegas]

A mortgage broker has access to many money sources.

[ShampooBanana]

Originally Posted by Tuck's Dad

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.

Nailed it. This is exactly what they consider. I'm going through the home purchase process now and have been at my current job for just under two months. I was out of work for about 4.5 months after moving back to Phx but prior to moving here had 2.5 years employment history in the same exact field. The new job pays more. They needed my offer letter and two paystubs.

[SmartMoney]

I do mortgage loans for a living. The overall employment history will be reviewed, but being unemployed for two months is not a reason to not get a loan. What is important, how did he handle his finances while out of work? Did he add to his debt or did he have savings? We're other obligations paid on time? How long has he been in his field? Is there a particular reason he was our two months? Was he cautious and selective before he committed to a new company? If he is on salary, there would be no reason to average his income, unless he had several jobs, not just two with a 2 month gap.

The standard for the industry is to collect one month's pay stubs, if possible. If not available, a bona fide offer letter signed by the employer and the applicant. A call will go out to verify he started his job and to verify the terms in the letter. Some lenders may even require a post-closing pay stub, thinking this adds to the loans saleability.

As a result of the mortgage crisis, I do not know of a lender that does not do a pre-closing verification of employment. This can be as much as 10 days prior to close, all the way up until the day of closing.

It's a different mortgage world now. It feels like we've gone backwards in many ways, but the trend really is loosening up the reigns.

[Thinking-man]

Yes. I got a 5 year ARM right after i graduated in '04. salary was about 47k so not that high; condo was about 225k. I'm willing to bet that with a steady job, you shouldn't have any issue with a loan.