How important is it to be employed for 12 months when applying for a mortgage?

Answer 1

Most conventials lenders want to see at least 2 years employment and prefer it to be in the same industry.

It's not high priority. We've been married 18 years and owned 4 houses. We put very little down, and I know that at least twice when we were buying a home, my husband was changing jobs or in the process of purchasing a business. We didn't have anyone co-sign for us for any of our mortgages - I am very proud of that because we were very young the first couple of times.

However, we had SPOTLESS credit. In fact, the lady at the finance company actually asked my husband if he was an alien. LOL! I didn't realize perfect credit was such a rare thing.

But really, choose your realtor and your banker as carefully as you'd select a family doctor. Find one who will work with you. That's what we did. If we didn't like the terms, we told 'em to hit the bricks.

I really wish I could remember what they were ( it's been a long time) but if you know what questions to ask your realtor or banker, you can really get ahead of the game. BUT the answers to these questions are apparently not common knowledge and they won't necessarily volunteer info if you don't know to ask. (It's like this with many professionals.)

If I can remember or get in touch with someone who knows, I'll post these 'secrets.'

If a conventional lender has a problem with employment of less than 2 years, talk to an FHA lender. Many mortgage brokers discourage clients from these and claim too much paper work, etc. but my experience has been excellent. This mortgage program allows for a lower down payment and is more flexible as to underwriting terms. They also protect buyers from junk fees that conventional lenders try to load up in the closing costs. (see "desk review fee", "appraisal review fee" "tax records review fee" ! And the FHA Addendum to the contract states that the house must appraise for the purchase price! The downside is that the loan amounts are limited by specific areas, but they are reasonable. You just won't be able to buy a palace on an FHA loan.