Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Pre-approval questions from first-timer
Hi ladies, I skimmed the first few pages, but couldn't find anything to answer my (probably very silly) questions. H and I are relocating from DC to Boston and are considering purchasing for the first time. If we get pre-approval, is that done based on our current incomes? We're moving for H's job, so obviously he will be employed, and I'm job hunting currently (early June move). If I can't prove employment in MA, will our pre-approval only be based on H's income/credit? And does that include my student loan debt? TIA!
Re: Pre-approval questions from first-timer
I just got off the phone with my loan guy with a question about employment rules. Pre-approval is based on current income. If your husband is staying in the same line of work he should be okay. They don't do it during the pre-approval, but once they do formal approval a form goes to your employer to confirm your pay and one thing they usually ask about is your likeliness to remain employed long term. If they tell the lender that there is a probationary period, the lender won't give you a loan until that period has ended.
If you can't prove employment, I don't think they would count your income. However, since you're married they would still count your student loan payment in your DTI ratio. I think they would also take your credit into account. I would suggest calling a lender and spelling out your situation. They'll ask tons of questions, but it will let you know where you stand and what you would need to do to get approved.
This doesn't really answer your question.... But i think you should rent for 6 months to a year first. You want to get a feel for certain areas, do you want to be in the heart of the city, or do you want one of the surrounding towns. You don't want to buy in the wrong section of Boston, etc. You really should get a feel for the neighborhoods first.
This. Also, yes, although student loans are deferred, they will count them in your debts. And be aware that what a lender approves you for, will be higher than what you can afford (possibly). They are only taking into account your debts listed on your credit report and your income(s). They don't know about your other expenses (utilities, cell phones, TV, daycare, etc.) so it's up to DH and you to figure out how much of a monthly payment for a mortgage you can comfortably afford.
Since you are currently not employed, you don't have any qualifying income to use. You can still be on the loan, and can definitely be on the title and deed. As long as your husband is maintaining the same line of work, there shouldn't be an issue. Generally speaking, you can't qualify with projected income, so you will be approved based on what your husband is making now. And you will need to provide a paystub showing 30 days YTD pay once the new job has started. So, IMO, it might be best to just do a six month lease so you can get situated, know the market, and get stable in your job.
And if you are doing FHA, your student loans must be deferred for 12 months to not be counted in your DTI