Posted on: 09th Oct, 2009 08:58 am
I made $42,000 in 2007 and $47,000 in 2008. I was on leave from work for several months to have my daughter in 2009 so my year to date is about $19,000. Will that negatively impact my chances of qualifyting for a mortgage?
Yes that will.
When the lender looks at the income, they will consider what is reported and they will not consider any toerh factors
When the lender looks at the income, they will consider what is reported and they will not consider any toerh factors
hi sunnything,
i don't think it should affect your chances of qualifying for a home loan. you went on leave as it was necessary. the underwriter will question about the reduction in your annual income. but i believe, an explanation letter to him/her will resolve this issue. moreover, you have a consistent income from the previous 2 years.
nevertheless, it is true that the underwriting guidelines have become strict after the sub-prime mortgage crisis. getting a home loan was not as difficult a few years ago as it is now. in case, you do not qualify for the loan because of your income, you can look for a co-signer. then after a year or two you can refinance the property solely in your name.
i don't think it should affect your chances of qualifying for a home loan. you went on leave as it was necessary. the underwriter will question about the reduction in your annual income. but i believe, an explanation letter to him/her will resolve this issue. moreover, you have a consistent income from the previous 2 years.
nevertheless, it is true that the underwriting guidelines have become strict after the sub-prime mortgage crisis. getting a home loan was not as difficult a few years ago as it is now. in case, you do not qualify for the loan because of your income, you can look for a co-signer. then after a year or two you can refinance the property solely in your name.
as a general rule, if you are returning to your primary job after the leave, you ought to be given credit for your regular wages. if you're salaried, that's a good thing. underwriters have become far more wary than in the past, however, and they may do an averaging of your income. this will hurt you. if you can provide documentation from your employer that your wages will be steady at a certain level, so much the better.
George to yoru last point, Not sure any employer will do that.
with written verifications of employment, these things are noted quite frequently, actually.
yes that correct. The emploer can show the current salary, but cannot gureantee that thats what will be in the future
undoubtedly, nothing in life is guaranteed except that we will die. however, in a common-sense environment (i admit a rarity in this day and age), a written voe - which asks for likelihood and not guarantee - will allow an employer to describe the circumstances surrounding someone's job and likelihood of continuation, etc.
it's only common sense that a person who's been on maternity leave, now returning to the same position, would be in line to make an annual wage that is commensurate with what has been earned in the past.
let me be the underwriter on this case, and you'll get credit for your full wages, sunnything.
it's only common sense that a person who's been on maternity leave, now returning to the same position, would be in line to make an annual wage that is commensurate with what has been earned in the past.
let me be the underwriter on this case, and you'll get credit for your full wages, sunnything.
Thats a good offer George
But as you knwo, hwo the market is today and how picky the lenders are today
But as you knwo, hwo the market is today and how picky the lenders are today
Lenders do seem risk averse (understandably) but as always, they will lend to a good overall risk. Good income history will be usefult o know, as will confirmation that you can go back to your job once your maternity leave has expired - provides some certainly that you will actually be able to get the income you have previously had again.
If you have a good credit history then you may just have to shop around a little, you would probably present a better overall risk than many others looking for a mortgage at the moment.
If you have a good credit history then you may just have to shop around a little, you would probably present a better overall risk than many others looking for a mortgage at the moment.
wretched made a good suggestion regarding shopping around a bit. there still exist some sensible lenders, who'll look at your overall history instead of dinging you for your maternity leave.
Good point guys