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New Job = No Mortgage??
Hi Everyone-
New to the Nest boards but previous posted on theknot all the time. Anyway, my husband and I have been long awaiting him to get a new job. He finally got it just a month ago and we ran off to the bank after a few paychecks to prove our new income level and get a mortgage, only to be told that due to his short employment at the new job, that we would have trouble. We knew that was coming and were prepared for that.
What we weren't prepared for was that the mortgage loan officer then told us that while my husband is on his probation period at work, which is one year, that NONE of his income would count towards our mortgage amount?! I don't understand why you would so hard to find a new, high paying job so you can afford the mortgage, only to be rejected. I understand that the bank would be taking a risk, but his job is also a Union position so his chances of getting fired for no reason, are soooooo extremely low, it's ridiculous.
Does anyone have experience with this or any advice? Thanks!
Re: New Job = No Mortgage??
My advice would be for the time being (if you can) wait the year and take the time to save up more money. We have roughly 20% down, but apparently it's not enough because other buyers are beating us out of houses with 30 - 40% down.
Dh just got approved for a mortgage after 1 year in his new positions. DH tried to buy a house when he received his job as well but were turned away because he hadn't been employed long and the job he held before wasn't even half what he makes now. I don't know why he was so anxious to apply for a mortgage at that point we weren't close to having enough saved for a down payment.
I'm not working currently. I stay home with our children during the day and am working on a second degree at night. Once school finishes up for the semester I'll be switching to an evening job.
The amount of time will differ for each bank. Some banks will require you to be established in your job for at least one year, while others will just need proof of employment and income.
When we got pre-approved for a mortgage, we originally decided on one bank, but after receiving information about a different type of loan, we switched to a different bank. Both banks approved us for a mortgage, and I had only been at my position for 8 months, and my husband had only been employed for 2 months.
If you're not happy with having to wait longer, start doing research on other banks and mortgagors.
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I would look into another bank. DH started a new job the week after we made the offer on our house. We knew this was happening and kept our mortgage person involved and updated, and we have had no problems. The only thing we had to do was wait until he got his first paystub to schedule a closing. Other than that, it wasn't an issue.
He didn't change fields or anything though. He has essentially the same job as before, just a new company.
Yes, we went through the same thing. I am a physician, newly finished with my training as of summer of 2012. Which meant my income more than tripled. We waited about 4 months, got preapproved, made an offer on our dream home and it was smooth sailing... Or so we thought. 1 week before closing, during the underwriting, they came back told us that my income doesn't count and the deal is off. They told us we need 1 year of income at that level to "count". We were pretty devastated.
luckily we were at a locally owned bank, the same bank we have been with for years and years, with impeccable credit scores, so the local bank ended up doing an in-house loan (instead of sourcing it out to the underwriters) but the downside is the only loan they could do was a 5 and 1 adjustable loan... It totally sucked but we did it anyway, but it did delay our closing by about a month,
It was so frustrating
We refinanced two months after I started a new job. Our broker told us that as long as I was doing the same thing (and didn't switch careers), it was fine.
Me: 29 DH: 32
HSG all clear!! CD3 b/w normal. SA: good count, high morph
Dec 2012: Clomid+ TI = BFN
Jan 2013: natural cycle =BFN
Feb 2013: natural cycle =BFN
Mar 2013: Clomid+ Trigger + TI + progest =BFN
Apr 2013: Clomid+ Trigger + IUI #1 + progest = BFN
May 2013: Clomid+ Trigger + IUI #2 + progest = BFN
Part (for us at least) of it is federal Freddie and Fannie rules and it depends on the type of income, to just the amount. There is a fairly new rule (we were the first couple my bank had ever it happen with) that restricts self-employeed from counting their income for a traditional fixed rate mortgage until you can document at least 12 months of income. A a physician I am technically "self employeed" the way my practice is set up, even though I get a set salary. Since I get a 1099 and not a w-2 it has to be considered self employed, which means no fixed rate loan for 12 months.
It hand nothing to do with the bank, just federal regulations on fixed rate loans.
since I changed jobs in the middle of the year and went from a w-2 type payment to a 1099 type payment, our options were: 1) not count my income 2) wait 12 months or 3) for with an ARM.
which is pretty lame considering we had great credit scores, were attempting a 15 yr foxed, 20% downpayment, and bough well below what most financial planners would consider a wise amount for a purchase price. Not to mention that fixed rate is so much less risky than and ARM so you would think Fannie/Freddie would encourage rather than dissuade. But whatever. (Can you tell I'm aggravated?)
we begrudgingly went with a 5 and 1 15 year ARM that is only allowed to increase by a certain percentage each yr after the initial 5 year period. However, we plan to refi for a 10 or 15 year fixed at the end of the first year if it looks like interest rates are creeping up.