Mortgage Qualification under these circumstances (loan officer, 2015, approved, credit score)

[indigo100]

Me and my wife have unique circumstances and are wondering if we should wait to apply for a mortgage or if we are qualified right now in our position.My wife had been working as a contractor for the school system as a substitute teacher for 1 year from 2015-2016. Before that she had stable 4 year work history for the same company/position earning 45k. From early 2016 to late Sept 2016 she was working and making 56k but was recently laid off. She found another position in the same field however she is earning less at 45k. I have been working for the same employer for the past 4 years however I went part time in late 2014 to take study for a certification. I recently got a job offer for $65k and am still working part time making $28/hr working 29 hours a week.Both our credit scores are in the 710 range.We have $55k in cash saved.What is our best case scenario for being approved for any type of mortgage (FHA or conventional)

[MikeBear]

That's all easy to determine: Find a local mortgage broker, and ask for a pre-qualification.

Take the last two years of tax returns with you, and a few of both of your last paycheck stubs, and a printout of your bank accounts, and retirement accounts (if any)

It's not an absolute guarantee that you'll be able to get a mortgage, but it's a good indicator of what you'd most likely be able to qualify for, IF you carry through on getting one.

[LifeIsGood01]

Originally Posted by indigo100

Me and my wife have unique circumstances and are wondering if we should wait to apply for a mortgage or if we are qualified right now in our position.My wife had been working as a contractor for the school system as a substitute teacher for 1 year from 2015-2016. Before that she had stable 4 year work history for the same company/position earning 45k. From early 2016 to late Sept 2016 she was working and making 56k but was recently laid off. She found another position in the same field however she is earning less at 45k. I have been working for the same employer for the past 4 years however I went part time in late 2014 to take study for a certification. I recently got a job offer for $65k and am still working part time making $28/hr working 29 hours a week.Both our credit scores are in the 710 range.We have $55k in cash saved.What is our best case scenario for being approved for any type of mortgage (FHA or conventional)

One factor is how expensive the homes are. I think you need 2 years work history, it can be in more than one job. You have good credit. You need to talk to a lender or mortgage broker. It also depends on your debt to income ratio.

[SmartMoney]

Originally Posted by indigo100

Me and my wife have unique circumstances and are wondering if we should wait to apply for a mortgage or if we are qualified right now in our position.My wife had been working as a contractor for the school system as a substitute teacher for 1 year from 2015-2016. Before that she had stable 4 year work history for the same company/position earning 45k. From early 2016 to late Sept 2016 she was working and making 56k but was recently laid off. She found another position in the same field however she is earning less at 45k. I have been working for the same employer for the past 4 years however I went part time in late 2014 to take study for a certification. I recently got a job offer for $65k and am still working part time making $28/hr working 29 hours a week.Both our credit scores are in the 710 range.We have $55k in cash saved.What is our best case scenario for being approved for any type of mortgage (FHA or conventional)

You have quite a few balls in the air - when you say "contractor for school system," the first thing that comes to mind is paid by 1099? And she is now earning 45K, salary, right? As long as your wife has a two year work history, her current salary can be used, assuming the earnings will be on a W2.

You've got two years part-time income, will your new employer guarantee your # of hours? How supportive they of your schooling? When you earn the certification you seek, what happens to your salary and hours? ie, is this new job a pit-stop or is this a career opportunity?

Finally, are you first time buyers? Your location is missing (critical for this type of question), so specific state programs can't be named. There's a good shot of going with 3% down with reduced MI, to 5% down (or more down) conventional, Fannie or portfolio lending. If you get a sloppy loan officer, they may miss some details, but the idea would be to package your loan as things (your qualifications) will only get better. And, of course you could wait until things are better, but when will that be? I don't care for the rates are rising argument (we've been hearing that now for 11 years), but it may have some short-term merit. Typically, when rates rise, prices come down, but that requires inventory (again, city/state). It's a crap shoot. So, what to do? Talk to a loan officer, confirm qualifications. Then, find the home you want. If you go for it, let it because it is the perfect home and no other reason.