Buying a Home with a New Job

What an exciting time to buy a house! You just turned 30, got a new job, and feel ready to take the next step of your life. However, you might be concerned that the new job that made buying your first home more affordable could risk your chance of getting a loan.

Many first-time buyers are just getting their life started in their career, but relocating for a new job can be difficult when searching for a mortgage. Having a new job might make qualifying for a mortgage a little more difficult, but it does not automatically disqualify you. 

If you’re thinking about accepting a new job or recently moved positions within the same industry, it won’t have too much impact on your chances of being approved for a mortgage.
Employment is not just your job history

You don’t always need years and years of work experience to get your mortgage approved. Lenders want to know you have a stability income that is ongoing, for at least the next three years.  Jobs that increase your income and/or job level in a field where you already proven yourself shouldn’t raise a red flag.

When to be Careful 

Job changes that make your income less predictable might raise more red flags. If you left a steady job as a paramedic to become a lead singer in a band, your bank might give you a “What in the world?” look.  That doesn’t mean you can never a buy a house if you follow your passion, but a lender will want to see at least two years of reliable singing career income on a mortgage application.
Believe it or not, your work history might make you decide to change loan types. For instance, getting a FHA loan with less than two years employment can sometimes be easier than qualifying for another loan type.

Below is a breakdown of what each loan type requires:

• Conventional: Two years of work related history.
• FHA: Two years of related history. Need to be at current job 6 months if applicant has employment gaps.
• VA loans: Two years or relevant schooling or military service. If active military, must be more than 12 months from release date.
• USDA: No minimum in current position; prove two years of work or related history.

Of course, there some cases where job changes can delay your mortgage loan, but it won’t automatically complicate your ability to get a home loan. Make sure to let your lender know of changes and promptly provide any document they might request. Remember, if you have already secured your home loan and accepted an offer on a house, don’t take a new job before your closing!

If you want a full team of Mortgage Professionals to help your decision on choosing the best loan option for you, we’re happy to help! Please don’t hesitate to reach out to us at 770-552-1000. We look forward to hearing from you!

3 things to avoid after applying for a Mortgage

What exciting news after you found a home to buy and have applied for a mortgage! But, before you begin the mortgage process, it’s important to keep your finances as similar as possible until the closing day. While you’re waiting to close, a few helpful tips may help the process go as smooth as possible.

Don’t make any large purchases

You have found the perfect home after months of searching. You are getting excited and can’t wait to move in. You begin to picture how your living room would be like with your new furniture. You are already in buying mode, especially after finding out your credit score is good. What could go wrong when making any major purchases at this time?

Unfortunately, making purchases at this time could jeopardize the closing and funding of your new home. You don’t want to lose an opportunity on purchasing your new home. So, do not make any large purchases like furniture, a car, a boat, or jewelry.

Don’t change jobs

If you immediately switch one job to another with a different career field or take a lower or higher paying job, you may have a harder time getting your loan approved. This is because underwriters will request at least two years of work history. Changing jobs during your mortgage application process will raise a red flag.

If you’re aware that your job position or pay structure may change during the process, make sure you let your loan officer know.

Don’t apply for new credit

We are marketed with all kinds of credit opportunities, especially with great deals like “save an extra 20% on your purchase today.” The list goes on, but it doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels, your FICO score will be affected.  Avoid applying for credit of any kinds whatsoever. Your pre-approval was based on the day your credit profile and score was applied. Remember, your goal is to keep your mortgage process running smoothly.

In general, don’t do anything that will make a significant impact on your finances without consulting a mortgage professional first. Please don’t hesitate to reach out to us, we’re happy to help you make the best decision.

Tips for Searching for New Listings

Ever wonder if you can get your dream home either before it goes on the market or right after? Negotiating for a home that’s been on the market can be stressful! Especially for first time buyers looking to search for a buy a home with less competition.

Here are some secrets for finding your dream house either before the listing goes live or immediately after.

How to win over an Upcoming Home

Ask your agent about listings he or she is trying to get. When asking, make sure it’s not the current listings. You’re basically offering yourself up as “bait,” of course you aren’t making any promises to buy a home, but if you’re interested on the property then you can try to get one step ahead of other buyers.

MLS systems usually don’t allow any showings until the home is on the market, however another way to check upcoming listing is on a Friday. MLS systems would list new homes on Friday morning. This is a good opportunity to jump ahead and go to their first open house and write an offer.

Making the Right Offer

You want to come up with a price that is agreeable to you. You can do this by spending time with your agents to ensure you’re not making any mistakes. When making an offer, you need to include documentation. Most sellers want to see that you have a pre-qualification letter, proof of funds, and possibly a copy of your earnest money.

When the seller receives your offer, the seller will probably think about the offer all weekend. Even if the seller elects to wait through the duration of the open house, your offer is still on their mind. This is when you need to wait patiently, as the seller might be tempted to take the offer.

Don’t miss out on the opportunity to search for your dream home. All it takes is a little resourcefulness and some investigating to find out which homes are going on a market so that you will be ready to act fast.

If you have any questions for us, don’t hesitate to give us a call at 770-552-1000. We look forward to hearing from you soon! 

How to make an offer on a House

Finding your dream home might take a while, so when you find the one, the next move is to make an offer.  Unfortunately, buying a house isn’t a handshake deal nor a verbal agreement, but with the right tools and a good offer, you can end up receiving the keys to your new house.

Check out these negotiations tactics to make the process smooth.

Make an offer

It’s all about supply and demand. You will want to look around the houses in the area that are similar and up for sale or recently sold. When you do, check to see how long the houses stayed on the market. If it’s more than average, then you are in a buyer’s market.

For example, just because a house is listed at $400,000 does not mean the house is worth that exact amount. This may mean that the seller has overpriced the home. If the house is sitting unsold for few months, don’t be afraid to negotiate at a better price.

Write a Letter

Believe it or not, you can boost yourself by writing a personal letter to the seller.

If by any chance you’re in a tight market and happen to find your dream home, a letter can sway them toward you. You want to write about what’s important to the sellers. For instance, you’ve notice they are a dog lover and you own pets as well. Write about how the backyard would be great for your Labrador retriever. If they’re runners, they’ll love that you’re excited about the nearby trails, too. Most importantly, if they’re parent’s as well then they will appreciate your intentions to do the same.

Keep your emotions in check

House haunting can be dreadful, especially if it takes quite a while for you. When you find the perfect home, try not to get emotionally attached.  Even an excellent offer may not be accepted, but if your offer is accepted, you should get down to the serious business of closing the sale. Just remember, it’s not a done deal until both parties sign the offer agreement.

Bottomline, when you shop for a home, make sure you do your homework. Having enough information will help you submit an offer that meets the market value.

If you have any questions for us, don’t hesitate to give us at 770-552-1000 or send us an email at skatz@vandykmortgage.com. We look forward to hearing from you soon!