Individuals contemplating the different aspects of a home loan have had questions throughout the process. Uncertainties of what the correlation of employment length to a home loan is or where the best place is to apply for a home loan is often lead to questions like the ones answered below by Experts.
Your own bank or credit union is a great place to try for a home loan. If you apply at your own bank or credit union they will easily have access to your account history and can offer you a good or favorable rate if you qualify. If your own bank or credit union is not an option for you then you could go to a mortgage broker. Mortgage brokers work with several different lenders, one of which may fit your circumstances.
Most mortgage companies that supply home loans will require paystubs and W-2s and even tax returns when you apply for a home loan. If an individual has 1099 income then the lender will most likely require the tax returns. A 1099 employee is equivalent to being self-employed; the lender would probably request the full tax return including schedules. They may also require bank statements, verification of employment, and perhaps copies of pay stubs.
Individuals that own their home carry the title to that home. Neither the bank that services the loan nor the investing bank holds the title. They hold a lien against the home. If you were to default on payments then the home would go into foreclosure. The house would be sold and you would receive any money that may be left over after the mortgage and any extra costs are paid. If you sell the home the banks would get paid off at the closing.
The amount of time that an individual has been employed does have a great effect on whether or not a person may qualify for a home loan. Even though there is no specific amount of years an individual needs to be employed, the longer the employment the better the financial stability is shown. Employment length alone will not qualify an individual for a home loan. There are many instances where a short term employed individual with a great credit history has qualified for a home loan. There are also many cases where a long term employed individual but with bad credit has not qualified for a home loan.
Case Details: This would be a first time homebuyer loan.
For credit scores above 580 FHA will typically allow for maximum borrowing. Based on credit scores you would qualify for a home loan but that is not all a home loan qualification is based on. The lender will also look at your income to debt ratio. They will also review your payment history from credit reports.
Knowing the right kind of information and having a good insight of a home loan can help when you are faced with situations that involve home loan questions. Experts can help answer where a good place to apply for a home loan or if the length of employment has any bearing on obtaining a home loan. Get the answers fast and affordably by asking an Expert.
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Question for RAKHI VASAVADA only : I bought my first home(Townhome) in USA just 2.5 yrs ago by taking a home loan or mortgage from a bank and just paid 5% cash down & rest home loan. The total agreed price of home at the time of home mortgage deal was $267000 and as of today my home mortgage stands at $240000 to pay and today’s market price of the same home is expected approx. $300000 or higher . Please guide me about the below : (1) Can I now take Home Equity Loan or Home Equity Line of Credit Card and will the interest payable be deductible as itemized in my Income Tax Return as I do for interest on home mortgage ? (2) Will there be any fee for getting Home Equity Loan or Home Equity Line of Credit Card as there is Origination Fee charged for Home Loan or Mortgage Application Process ? (3) Will the current valuation of home be necessary if we apply for Home Equity Loan or Home Equity Line of Credit Card ? Who will pay for valuation fees – Bank or me ? (4) I have been regularly paying monthly instalment of my home mortgage since end of 2012 and I know that my monthly home loan instalment includes $150 for Mortgage Insurance Premium each month and I can ask to remove it if I get 20% equity share on the basis of current valuation of my home . Please guide me if I should apply at the same time for the removal of mortgage insurance premium from my monthly instalment & apply for new home equity loan or home equity line of credit card because I think that current valuation of home will be necessary for both the applications i.e., Application for mortgage insurance removal & Application for new home equity loan /home equity line of credit card ?