Will I be approved for a mortgage if I work a contract job?
So I'm preapproved for a mortgage and so I made an offer on the house of 63k. My offer was accepted by the seller. So now the mortgage agent is hashing out the details and I think finalizing my mortgage approval. I'm worried that because I work a contract job that I won't be able to be approved for finalized mortgage.
Has any one had this problem before?
- Arbor MortgageLv 410 years agoBest Answer
It is possible to be approved with a contract position if you show at least a 2 year history of work in that field, if the current job is likely to continue, and if this is the normal type of employment for your industry. There are other variables that will be specific to your situation, so no one can say for sure that you will be approved, but it's not an automatic turn down.
Good luck!Source(s): Mortgage Lender
- 10 years ago
Most mortgage lenders require an application which describes your income and based on the new laws they take into consideration how and where your income is derived (it's there job by federal law)
When you say you've been "Pre-approved" it really means very little until the actual application is submitted and approved by the lender. The RE agent dresses up his action by telling you what you want to hear. Pre-approved is a very loose term. He goes by what you TELL him and gives your offer to the owner, if he accepts, fine now the real process begins. Find out who the lender is going to be and give them (a loan officer) a call.
Don't offer information just ask the pertinent questions . . . . did ya get my application ? How long before I'll get an answer ? Be sure you have a physical inspection and/or an insurance appraisal before you accept the home. The lender will require homeowners insurance . . . . shop around for that. Make sure the policy is written for replacement costs of any damage or loss. If not you can loose your *** if there is any substantial damage or loss. If it has a basement be sure you get sump pump coverage.
- golferwhoworksLv 710 years ago
good question. Contract labor is just that it has a potential to end on a certain date. If that is not at least 3 years out then the loan will be turned down. That is the rule
I am a mortgage banker in TN