Post # 1
I’ll be finished with classes in November of this year and I was planning on buying a home next summer. However I was just reading about loans and several places stated that lenders will want you to have worked for at least two years in the same industry if not the same job. Obviously I’ll only be looking for a house once I have a steady job but will only have been working for a few months. I really don’t want to have to wait two+ years to buy a house. I’ve had jobs for several years but none of them have been “career” jobs.
What do you think, will I have a problem getting a loan?
If it matters, I have little debt (student loans only) and a decently high credit score, and would be looking at homes that would be very comfortably within my projected salary. Oh and I have enough for about 10% down.
Thanks for the input!
Post # 3
If your job is salary or hourly with a fixed number of hours per week, some lenders will give you a loan after six months on the job. You’re interest rate my be high, and you may have to apply several places before you get a yes. Still, there is a definite chance.
Post # 4
I don’t think you will know for sure until you are ready to actually go buy a house. Another avenue you can try is after you have the full time job to go to a couple banks and get a pre-approval.
We bought a house a little over a year after we both graduated from college. But we were both on the paper, it was a different market then, we had 20% down, my husband had been at the same job full time for well over a decade, I had a full time job already for a year and though I Recently moved had already landed a full time job.
Post # 5
@moonadea: I graduated from college in 2010 and Fiance graduated in 2011 and we got an offer accepted on a house today. Job consistency/duration is unfortunately pretty important to lenders, but it’s not EVERYTHING. Jumping jobs or not having much of a work history significantly affects how the banks view you as a threat. However, if you have money saved for a downpayment and a decent credit score, those things play in your favor as well. Basically banks just want to make sure you’re as safe as a bet that they can make on whether or not you’ll be able to afford monthly payments.
If you can secure a steady job for over 6 months in your career path, though, with the other things you have going for you (saved money, credit score), you should be ok!
Post # 6
Hmm.. I am not sure how it works where you live, but in Australia I am still studying and I am unable to get a home loan (personal loans only of $6,000 max). Fortunately my Fiance works full time and is able to get a home loan. We are looking for our first home now which is super exciting!
Post # 7
Unfortunately the down market with all the foreclosures and short sales have made lenders pretty tough. I would talk to your bank or a mortgage lender and see if you’ll prequalify based on your projections. They definitely checked my employment history to ensure I had a history of steady income. They need to run a debt ratio to ensure what you are earning is enough to cover the mortgage plus average living expenses. Typically they will not give out a loan if your mortage payment will cost you more than 30-40% of your salary (including taxes & insurance). Also if you only have 10% to put down you will have to pay PMI. Not saying its impossible, but be prepared to have to jump through hoops.
Post # 8
@candykiss: I agree that loans have been really tough lately. We had problems even though we have been employed at the same place over a year, had money for over a 20% downpayment and really high credit scores. You might want to check into FHA loans since you have a lower downpayment than is required for a regular loan.
I would just make sure that you both have jobs before making the jump to homeownership. You might not like it but it might be a better job market somewhere else for one of you making it hard to stay where you are. We had to move for my husband to get a job after college.
Post # 9
Darling Husband and I bought our house within 6 months of graduating – started looking for a place within a month.
That being said, we went with an FHA loan, only put 3.5% down, but had money and decent jobs. Both our jobs we had for over a year at the time, but neither were full time until after we graduated. The bank we went through asked for a signed letter from my boss stating my salary and some other basic info, but that was it.
Post # 10
Darling Husband and I just bought in Atlanta and while he’s been at his job for ~3 years now, I changed jobs when we moved back here and won’t even have 2 months at my job on the day we close.
We put 8% down (could have put a little more but financially it was smarter for us to keep that safety net in our personal accounts) and had zero issue gettting a good loan with a great interest rate.
I say it certainly wouldn’t hurt to try – just make sure you are planning to be in the same area for a while because with this market, you aren’t going to want to have to up and move in the near future and have to sell.
PM me if you want any info on the mortgage broker we are working with. She’s been great and got us a fantastic rate.
Post # 11
We did. We bought our home probably 7-8 months after we moved back to our hometown. In our case, Fiance had a pretty well established work career within his field even while college age and in school. We were able to get an FHA loan, and the bulk of it was because of Fiance as my history was not as established (although I was bringing the down payment).