Fiance and I are ready to buy a home! But..?
He is an electrician and just had his first temporary lay off . We didn't think too much of this and we were just calculating his unemployment into our financial piece of buying a home.
Will we have a hard time getting preapproved since he is currently temporarily laid off?
I have a normal paying full time job myself.
Also, any tips for first time homebuyers?
- loanmasteroneLv 77 years agoFavorite Answer
You and your fiance should prepare and sign an agreement as to the disposition of the property in the event the relationship does not go as you both plan. You are about to enter into a partnership with no structure. Our laws are geared to those that are married and would have a legal means of dissolving property through a court.
Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments. This will allow you to make an intelligent decision.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some benefit to you, good luck
- AnonymousLv 67 years ago
You need to sit down and talk to a mortgage broker. They use many factor when determining whether or not to pre-approve someone and we cannot give you an answer on here.
I will say that the lay-off will not help the process. Depending on how long and the nature of it, you may not be able to count his income towards the process. You might be limited to financing what you can afford with only your income.
- glennLv 77 years ago
Getting pre approved takes about 15 minutes. Locate someone local that is very experienced and competent. Do not do this with a large bank or over the internet- you want to be able to walk in and talk at a desk with the guy if something complicated comes up.
- Beverly SLv 77 years ago
We need 2 years full time employment on each borrower. If he is laid off now he won't qualify. The only way to buy is to base it on your income & your credit only. Get pre-approved with a lender before buying.Source(s): Mortgage lender 27 years.
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- haspelLv 43 years ago
If possible, i might propose paying for a small "starter" living house. you are able to consistently purchase something extra appropriate later. Condos are an determination, yet you will in many cases ought to pay a month-to-month HOA value. the two way, i think of paying for a house/condominium is extra appropriate than renting.