mortgage loan dilemma (Atlanta: 2013, lease, insurance)

[kmoon322]

Hi,

I have a dilemma in mortgage finance.

I will be moving to Atlanta in August and planning to buy a house before starting my work there. The problem is a mortgage consultant asked me to provide a paystub showing my income, which I can provide only after starting my work. He told me that job offer letter, my stellar credit score, and 30 percent down payment wouldn't be enough to get a loan. Unfortunately, my past income isn't enough to get a loan of the amount I am hoping to get.

I remember that I went with a stated income loan when I bought my first house about 10 years ago. And it seems that most major banks don't deal with that anymore. Do people go with full doc only recently or there is still such thing is stated income loan? Any idea about what I need to do in this situation?

Thank you!

[lorilove]

Stated income loans are a big reason for many of the failed mortgages - guess what, people lied!

My understanding is that it has gotten quite difficult to qualify for a loan these days.

[AnsleyPark]

Unfortunately, I doubt a lender will provide financing without a steady income.

[Esteban5]

Yes, times have changed. No proof of income, no loan.

[George Chong]

Like everyone has stated, no doc loan are a thing of the past. Lenders are much more strict in loaning out money. All your i's have to be dotted and your t's crossed.

A letter of intent or even a letter of employment is only worth the piece of paper that it is written on. It proves no regular income on your new salary level. What if you never take the job or have no intentions on taking the position? You can see the dilemma that the lender is in too.

The only suggestion I have is to contact another mortgage broker and run the scenario by them or wait until you have a couple months at your new job so you can qualify.

[bdawk]

Right! "No doc" and "low doc" loans were BS to begin with. If I were lending someone 100K, 200k, 500k+, why would I not want every possbly piece of documentation building a case for the borroweres credit strength, income source and intent to pay?

Why not rent for a few months to start?

[samiwas1]

We had a huge issue back in 2005 getting our loan secured. My wife and I are both mostly freelance in the entertainment industry. At the time, our combined yearly income was about $90k. Because we didn't get a standard weekly paycheck stub, but instead just received large checks upon completion of a job, there was no real repeating support of our income. And all this for a sub-$200k loan.

We had to dig out every paycheck we had received in the past three years, every income tax form we had filed, every cent we had spent...they wanted EVERYTHING. And then when I had filed one set of 2004 taxes on a 2003 form, well all hell broke loose, and they wouldn't accept any of it (cue Photoshop). We went through so much hell, I almost canceled the entire house-buying process. But we've never even come close to not being able to pay, so I'd say we were pretty low risk in the end.

And this was when mortgages were being handed out like candy. I cannot imagine what it would be like for us to get a loan now, even though I have almost perfect credit (hers is good too) and our yearly income is now generally $125k a year. I'm terrified to even start the process again.

[flyonpa]

You might want to try a lease - purchase contract, "rent" it till you have your jobs and can show you can aford the mortgage to the bank. Then execute the pruchase option.

[vagabundo94]

I got a loan a few months back. My wife and I both have great credit scores. I've been with my current employer for several years. My wife has owned a profitable business for several years. Our combined income is good. And the loan process was so grueling and frustrating that it drove me crazy.

Nope - getting a loan today is a completely different ballgame than it was a few years ago. I seriously doubt you'll find a lender willing to approve you now. And, as it sounds like you would like to get approved based on your current income and not your previous incomes, you may not be able to get the loan you want until 2013. I say that because the banks put as much or more weight on your tax returns than they do your paystub, these days. They may want to see your 2012 tax return, showing a full calendar year in your new job.

Not saying you won't get approved before 2013. Just saying that you might not be able to get all of the terms you're looking for until then.

[MovedfromFL]

If you are a customer of USAA, then you have a shot. They approved us last summer based on a job offer, well before the job start date. They were the only lender that would do so. Luckily, we've been customers of USAA for years, with homeowner's insurance, auto, and life.

All thanks to my dear old Dad who was in the Marines!