Posted on: 22nd Aug, 2010 02:09 pm
Two years ago I left the security of a good paying job with a very large company to join a small consulting/software development company. When I left the large company, with whom I had been employed with for more than 10 years in increasingly higher job positions, I was earning approximately $160,000 a year plus benefits.
For the past two years with the consulting I have been earning a paltry, $45,000 per year (As a 1099 contractor) and was recently asked to come back to the company that I left two years ago. I will be earning at least the same, possibly more than when I left ($160k+). The offer will be extended this week and I should be starting in two weeks.
I have excellent credit. My current mortgage has a balance of $115,000 on a house with a current (realistic) value of around $340,000. My wife and I just found a fantastic house in our neighborhood that she really wants and is listed at $365,000.
Question: Since I had two recent down years as a 1099 contractor but will be returning to a former long time employer, will it be possible to get a mortgage on the new house (with about a 40% down payment) soon after I start my new job? And, if so, how soon?
For the past two years with the consulting I have been earning a paltry, $45,000 per year (As a 1099 contractor) and was recently asked to come back to the company that I left two years ago. I will be earning at least the same, possibly more than when I left ($160k+). The offer will be extended this week and I should be starting in two weeks.
I have excellent credit. My current mortgage has a balance of $115,000 on a house with a current (realistic) value of around $340,000. My wife and I just found a fantastic house in our neighborhood that she really wants and is listed at $365,000.
Question: Since I had two recent down years as a 1099 contractor but will be returning to a former long time employer, will it be possible to get a mortgage on the new house (with about a 40% down payment) soon after I start my new job? And, if so, how soon?
Hi miles_kramer,
As you have a good credit and a stable financial situation, I guess you would be able to qualify for a new mortgage to buy the second property. However, it would be better if you could sell off your present property as it will help you in lowering your debt to income ratio and it would become further easier for you to qualify for a loan.
As you have a good credit and a stable financial situation, I guess you would be able to qualify for a new mortgage to buy the second property. However, it would be better if you could sell off your present property as it will help you in lowering your debt to income ratio and it would become further easier for you to qualify for a loan.