Posted on: 30th Apr, 2008 07:11 am
Hi All!
My wife and I are looking to buy a house in either in either Las Vegas or Colorado Springs (haven’t decided where yet). We would like to buy a newly built house if possible but are willing to settle for one that is on the market and is fairly new.
Our background:
• We live in Hawaii and rent a small condo
• My wife is an immigrant and just opened up a secured credit card but otherwise has little credit history.
• I had a CH7 bankruptcy back in 2002. No missed payments within the last year or longer. Credit scores from the 3 bureaus: 632, 643, 677. I think I need to clean up my report a little as I believe the 677 is closer to the mark.
• We currently do not have any loans or other debt. Any credit card debt is paid off the same month it is incurred.
• My wife is a stay at home mom. I make approximately 96k pretax and have been with my current employer over a year and in the industry for 7.
• We have approximately 150k in liquid savings.
• We are looking to get a loan for approximately 400k
• We are willing to put down around 40k, more is doable but less is better
• I am former military and qualify for a VA loan but unsure what loan type is best
• We would like to buy and move as soon as possible and plan to stay in the home at least 5 years or longer
The problem that we have is I will not have a job in the new location in which we will be buying our house in. However, I plan to go back overseas to the Middle East as a contractor for a year once my family is settled in the new house. While I don’t actually have any job offer letters at this point, I am extremely confident I will be able to get a job (working IT) without much trouble once I start looking. The problem is a chicken before the egg type deal. We want to go ahead and buy a house and settle into it before I leave, but we need to have an established income in order to get the loan. With this in mind, one solution we were thinking of is to narrow down the area where we want to live (and pick the house we want there) and then get the loan while I have my current job. Once we get the loan approved, then I would quit this job and we would move and settle in. Once settled in, I would go ahead and look for my contracting job in the Middle East. Between the time that I left my current employer and the time that I received my first paycheck as a contractor we would be using some of our savings to tide us over. While there is risk to this plan (i.e. the possibility of a long delay in finding a new position), I believe it’s our best option. I can’t think of any alternative that will allow us to buy a house somewhere besides Hawaii and still get a loan.
One of the reasons I haven’t been searching for a new job overseas yet is because once I am hired, they expect you to leave for that job almost immediately. It is really important to me to ensure my family is settled before I leave. It just seems like too much to lock down a new job, find a house, and get a loan all at the same time. Incidentally, any job I get overseas will pay between 100 and 220k with the first 88k or so of it tax free which is why I am considering going back over there. While I am gone my wife’s mother will be staying at our new place to help out with our 2 year old daughter which is a great help.
We don’t want to “deceive†the loan officer by telling them I make 96k and then quitting my job once the loan is approved. Is there an alternative? If not, and we go ahead and go with this plan is better to just tell the loan officer that ya I have a job now, but there will be a gap in employment once the loan is approved? Seems like a fast way to NOT get a loan approved...
Some other questions we have:
• Is it unethical to do what we are thinking? Is it illegal?
• Is there a difference between buying a house currently on the market, or a brand new house that might not even be built yet? How would this affect our situation?
• How long from start to finish does a loan processes take and at what point is it “for sure�
• Once we settle on a house, at what point would it be safe to put my resignation in without jeopardizing the loan? It would be a tragedy for us to lose the loan after I left my job because we acted to quickly.
Thanks for any help or advice offered!
My wife and I are looking to buy a house in either in either Las Vegas or Colorado Springs (haven’t decided where yet). We would like to buy a newly built house if possible but are willing to settle for one that is on the market and is fairly new.
Our background:
• We live in Hawaii and rent a small condo
• My wife is an immigrant and just opened up a secured credit card but otherwise has little credit history.
• I had a CH7 bankruptcy back in 2002. No missed payments within the last year or longer. Credit scores from the 3 bureaus: 632, 643, 677. I think I need to clean up my report a little as I believe the 677 is closer to the mark.
• We currently do not have any loans or other debt. Any credit card debt is paid off the same month it is incurred.
• My wife is a stay at home mom. I make approximately 96k pretax and have been with my current employer over a year and in the industry for 7.
• We have approximately 150k in liquid savings.
• We are looking to get a loan for approximately 400k
• We are willing to put down around 40k, more is doable but less is better
• I am former military and qualify for a VA loan but unsure what loan type is best
• We would like to buy and move as soon as possible and plan to stay in the home at least 5 years or longer
The problem that we have is I will not have a job in the new location in which we will be buying our house in. However, I plan to go back overseas to the Middle East as a contractor for a year once my family is settled in the new house. While I don’t actually have any job offer letters at this point, I am extremely confident I will be able to get a job (working IT) without much trouble once I start looking. The problem is a chicken before the egg type deal. We want to go ahead and buy a house and settle into it before I leave, but we need to have an established income in order to get the loan. With this in mind, one solution we were thinking of is to narrow down the area where we want to live (and pick the house we want there) and then get the loan while I have my current job. Once we get the loan approved, then I would quit this job and we would move and settle in. Once settled in, I would go ahead and look for my contracting job in the Middle East. Between the time that I left my current employer and the time that I received my first paycheck as a contractor we would be using some of our savings to tide us over. While there is risk to this plan (i.e. the possibility of a long delay in finding a new position), I believe it’s our best option. I can’t think of any alternative that will allow us to buy a house somewhere besides Hawaii and still get a loan.
One of the reasons I haven’t been searching for a new job overseas yet is because once I am hired, they expect you to leave for that job almost immediately. It is really important to me to ensure my family is settled before I leave. It just seems like too much to lock down a new job, find a house, and get a loan all at the same time. Incidentally, any job I get overseas will pay between 100 and 220k with the first 88k or so of it tax free which is why I am considering going back over there. While I am gone my wife’s mother will be staying at our new place to help out with our 2 year old daughter which is a great help.
We don’t want to “deceive†the loan officer by telling them I make 96k and then quitting my job once the loan is approved. Is there an alternative? If not, and we go ahead and go with this plan is better to just tell the loan officer that ya I have a job now, but there will be a gap in employment once the loan is approved? Seems like a fast way to NOT get a loan approved...
Some other questions we have:
• Is it unethical to do what we are thinking? Is it illegal?
• Is there a difference between buying a house currently on the market, or a brand new house that might not even be built yet? How would this affect our situation?
• How long from start to finish does a loan processes take and at what point is it “for sure�
• Once we settle on a house, at what point would it be safe to put my resignation in without jeopardizing the loan? It would be a tragedy for us to lose the loan after I left my job because we acted to quickly.
Thanks for any help or advice offered!
Hi psheridan,
Welcome to the forum.
Your credit score seems good and you earn enough to get approve for a mortgage? So are you willing to quit from your present job? Con you make payments after you quit the job?
It is not illegal to quit the job after you get approved for a mortgage and the lender will not have any problem as long as you make your monthly mortgage payments regularly. But think twice before you quit your job because after taking the mortgage because if you cannot make payments then neither it will help the lender nor you.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Your credit score seems good and you earn enough to get approve for a mortgage? So are you willing to quit from your present job? Con you make payments after you quit the job?
It is not illegal to quit the job after you get approved for a mortgage and the lender will not have any problem as long as you make your monthly mortgage payments regularly. But think twice before you quit your job because after taking the mortgage because if you cannot make payments then neither it will help the lender nor you.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Hi Psheridan,
I must say I appreciate the way you've explained your situation. It helps one who's here to gives suggestions. Now, considering your situation, I should say you have good savings and income currently. Your credit scores are moderate and the money you're putting down is also appreciable. And it's good that you pay off credit card debts the month it's incurred. I hear so many people being unable to pay them off. Only thing that I'm concerned about is your employment.
If you would already got a job overseas, the employment wouldn't have been an issue. But it's not the case right? You'll apply for a loan, buy a home with the funds and then go overseas for a job. That's what something that lenders may not agree to. This is because they don't know how much you'll be able to earn, leave aside how much you're earning now. The payments have to be made once you get the loan. So, I suggest you look out or a job overseas and then try for a mortgage. That will be much easier as far as getting an approval is concerned.
If you have more queries or wish to discuss further, please feel free to do so.
Regards,
Jessica
I must say I appreciate the way you've explained your situation. It helps one who's here to gives suggestions. Now, considering your situation, I should say you have good savings and income currently. Your credit scores are moderate and the money you're putting down is also appreciable. And it's good that you pay off credit card debts the month it's incurred. I hear so many people being unable to pay them off. Only thing that I'm concerned about is your employment.
If you would already got a job overseas, the employment wouldn't have been an issue. But it's not the case right? You'll apply for a loan, buy a home with the funds and then go overseas for a job. That's what something that lenders may not agree to. This is because they don't know how much you'll be able to earn, leave aside how much you're earning now. The payments have to be made once you get the loan. So, I suggest you look out or a job overseas and then try for a mortgage. That will be much easier as far as getting an approval is concerned.
If you have more queries or wish to discuss further, please feel free to do so.
Regards,
Jessica
I'm also in bankruptcy but chapter 13. you think i can relocate while i continue paying and then buy a home? i don't have any other debt except those included in bankruptcy.
Welcome fredrick,
If you are presently in BK 13 then it is better not to go for mortgage right now. As you have filed BK your credit may not be very good. So try to improve your credit report first and save money for down payment and closing cost.
Let me know if you have any further questions.
If you are presently in BK 13 then it is better not to go for mortgage right now. As you have filed BK your credit may not be very good. So try to improve your credit report first and save money for down payment and closing cost.
Let me know if you have any further questions.
I believe we have enough savings to last us a while after buying a house to make all the required payments and such. The reason we are considering such a move is becuase we do not want to live in Hawaii any longer due to the expense of living here. The pay to cost of living ratio is just too out of whack. On the other hand, when I do go overseas I will not be able to search for a house so getting one before I leave is key. As I said before, I need to ensure my wife and daughter are settled before I leave. Also, getting hired before hand wont work becuase I will be expected to depart within a few weeks of my hire date, which leaves no time for settling my family.
I do have a question: about how long does the loan processes take once we settle on the hosue that we want, on average?
About how long from start to finish does a typical loan application take?
I do have a question: about how long does the loan processes take once we settle on the hosue that we want, on average?
About how long from start to finish does a typical loan application take?
Hi Psheridan,
It depends on the lender you are working with. In most cases, one has to lock in the rate offered so that he's not affected by any rate increase as such. About 45-60 days of the rate lock, one can close on the home as during the time period, the underwriters appointed by the lender review the loan application and evaluate the risks in offering any loan to the borrower.
Good luck
It depends on the lender you are working with. In most cases, one has to lock in the rate offered so that he's not affected by any rate increase as such. About 45-60 days of the rate lock, one can close on the home as during the time period, the underwriters appointed by the lender review the loan application and evaluate the risks in offering any loan to the borrower.
Good luck
Thanks