Posted on: 03rd Oct, 2012 03:51 am
I want to buy a new home in the next few months. I've been previously working as a 1099 employee for a company for over 2 years. I've now transitioned to a W-2 employee and draw a salary of $72k yearly. Along with my wife's 36k/yr salary, what will I expect during the application process, especially regarding income?
Make sure you have a good credit score when you apply for a mortgage loan. This is important because the mortgage lender will agree to approve your loan request only when you have a good credit score. Also, you will be able to take out the loan at an affordable rate of interest. However, if your credit score is bad, there are high chances that the lender will reject your loan request. This is because he thinks that you may make a default in repaying the home loan.
Yes, it is extremely important for both of you to have a really good credit score in order to qualify for a good mortgage offer, with low interest rate. In addition, you will also be required to maintain a low debt to income ratio.
You are in good shape income wise. If you were a wage earner then went to 1099 or self employed, then you would not have a 2 year history and you would not be able to use any income. Since you went from basically self employed to a wage earner, the lender will require a VOE (verification of employment) and 30 days worth of paystubs. As long as your credit is ok, and your debts are under control, and your debt to income ratio including the mortgage, tax, insurance and all your debts are under 40-50% of your income, you should be able to get a home loan.
Thank you Chris and all others!! :) Your help is appreciated... Now I am pretty sure that I'll get qualified for the loan!!
i want to apply for home loan ,please give me best option available in market.
Hi harish,
You haven't given any details. What is your credit score like? Are you self employed or salaried? Please give us the details so that we can help you further in this regard.
Take care.
You haven't given any details. What is your credit score like? Are you self employed or salaried? Please give us the details so that we can help you further in this regard.
Take care.
If you have the necessary documewnts proving your income and employment and if your credit score is alright, then it will not be a problem for you to get approved for a mortgage loan.