Jan 24. (FreeRateUpdate.com) – In this article, I would like to go over some of the basics in order to prepare you for getting an FHA mortgage. Before you ever talk to a mortgage lender, you can start getting your house in order, so to speak, so that when it comes time to apply for your loan you will have every thing you need and you will have a good idea of how much you qualify for when you are ready. There are some basic rules that all lenders use to qualify a borrower.
The first things they look at are job history and monthly income. This is a household number and is broke down by the number of income earners in the home. Job history is very important because it shows the lender that you are a stable borrower and that the likelihood of you repaying the loan is good. For this reason, the lender wants to see at least a two- year history of continued employment. There are two exceptions to this. The first is if you have just come out of college and just started a job in a new field. The other is if you have just experienced unexpected circumstances where you were unable to work. For example, a prolonged illness or a job layoff that was out of your control. In any of these cases, your job history would still be acceptable.
When it comes to income, your income is broken down to a monthly gross amount. This means they are looking at your before tax income. In addition, you need to work about 34 hours a week to qualify as a full time employee. If you do not qualify as a full time employee, then you need a full two years employment at the same job in order to use part time income to qualify.
If you need help figuring out if your job and income qualifies for a mortgage, go to http://www.dependablemortgageinc.com and send me an e-mail. Come back next week when I will talk about how mortgage lenders use credit and debt in conjunction with income to qualify a borrower.