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Old 05-26-2009, 05:58 PM
 
943 posts, read 3,950,349 times
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My salary will increase almost $25000 within the next three years (Government employer). It would take a minute to explain, but the point is if I remain with my employer that is the increase I will get. Does future income (I could get a letter proving it) have any effect on a mortgage application? Im guessing no because the underwriting is done by a computer that cant account for this? Is that correct?
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Old 05-26-2009, 06:11 PM
 
Location: Plano, Texas
1,675 posts, read 6,615,236 times
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Your guess is correct. You cannot use future income even if a letter says you will get it. Until you get it, you dont have it.
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Old 05-26-2009, 08:13 PM
 
Location: Texas
5,873 posts, read 7,241,391 times
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Nope. But they will get a good laugh if you try. Also you have to show proof of the income for at least six months (I believe under new guidelines) for it to count as your "new" income.
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Old 05-26-2009, 08:56 PM
 
28,461 posts, read 75,137,154 times
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A good argument could be made to rent until you get the salary boost. The problem with buying now and then wanting to move up post promotion is that whatever you buy now is unlikely to be something that you could profitably sell in just three years...
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Old 05-27-2009, 10:00 AM
 
943 posts, read 3,950,349 times
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Quote:
Originally Posted by chet everett View Post
A good argument could be made to rent until you get the salary boost. The problem with buying now and then wanting to move up post promotion is that whatever you buy now is unlikely to be something that you could profitably sell in just three years...
I would buy a home to live in long term, but out of curiosity are you saying you expect the market to be down for 3 plus years?
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Old 05-27-2009, 10:09 AM
 
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Default Did I say that...

Quote:
Originally Posted by ogplife View Post
I would buy a home to live in long term, but out of curiosity are you saying you expect the market to be down for 3 plus years?

I do not expect a sudden uptick in prices or interest rates. I think the hyperinflation talking heads are working on a whole different investment / advice scam.

Down the road, perhaps during a second Obama term, inflation may be more of a concern, but more and more I am thinking in terms of Congressional cycles and locally people are lining up for the 2010 elections with no real inflation on the horizon.

Might it be here in 2012? Dems would have much to lose...


I do not have a crystal ball. I read the same newspapers that other business people do. I see little to make me quake that inflation is going to explode.

2014 is a very very long way away and much could change by then, but the OP did not ask about 5 year horizon...
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Old 05-27-2009, 11:08 AM
 
Location: MID ATLANTIC
8,140 posts, read 19,989,830 times
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Actually, we see this quite a bit with interns fast-tracked w/in the civil service community, often used as a recruiting tool in the intelligence community. (We see this frequently in the Wash DC area). If you have your Personnel Action that spells out your career path, the jumps have bee used successfully as a compensating factor. You will not be able to automatically jump to year 2 of the income ladder, but in some cases use it to offset a debt that is near, but not quite, retiring. You most certainly would have to have completed any probationary period.

Each file is unique and contrary to public opinion, manual underwriting is still available with portfolio lenders (including with the retail big box lenders). The key though is to find a lender that is familiar w/ the civil service rapid advancements and is willing to go the extra mile to present and package the case.
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Old 05-27-2009, 12:26 PM
 
Location: Plano, Texas
1,675 posts, read 6,615,236 times
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Just today, mortgage rates have moved higher by more than a .25%. Forget rates under 5%.
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Old 05-27-2009, 01:26 PM
 
28,461 posts, read 75,137,154 times
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Default Understood. There are trade-offs.

Quote:
Originally Posted by VictorBurek View Post
Just today, mortgage rates have moved higher by more than a .25%. Forget rates under 5%.

I too really appreciate when my ability to borrow at rock bottom rates enables me to 'afford' more, but it do not expect and combination of rising rates to also be accompanied by hirer prices, so affordability may not change.

Waiting is risk that that must weighed against 'jumping in'...
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Old 05-30-2009, 10:28 AM
 
Location: San Jose (Willow Glen)
180 posts, read 649,523 times
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we have trouble enough getting them to accept past and current income, much less future income...=)
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