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Income Documentation

I am completing my PhD soon and will then start at my new job. I have been working for the past 6 years, but my income has been 1/3 that of my new job. Can I obtain a mortgage based on my new job income before receiving a paycheck at my new job?
  • January 02 2009 - Bolingbrook
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Answers (5)

Congratulations on your PhD. Being the lender I would want to see an offer letter from your future employer with a requirement to document a first paycheck by closing. This would be evaluated along with your credit score, income comparison to expenses, and down payment.

Hope this helps.

 

  • January 05 2009
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Profile picture for youry
I face the same problem. Right now my salary is $55k/year. Starting with July 1st I will make $120k. I'd want to buy a house around $300-350k range but I want to do it 2 months prior to my relocation. I haven't got in touch with a loan officer, yet but I wonder if I can get the approval with a precontract and let say 30% down payment instead of 20%. Or to stay with 20% and pay in advance 2-3 mortgages. I guess is all about the officer in the end. My credit score is 823, if that makes a difference.
Btw: does anyone know what would be the amount to qualify for with $55k income?
Thank you
  • January 05 2009
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Don't bet on it. Watch decline in values from the comfort of your apartment. Keep the crystal ball hidden for now. 
  • January 03 2009
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Profile picture for Planners
You can QUALIFY based on a offer letter, but all the lenders I know will want to see a paycheck before they will actually fund the loan. This is the kind of thing that you should discuss with the lender that is actually financing you, as some lenders may have more flexibility than others given your particular situation.

Congratulations, by the way.

Tom O
  • January 02 2009
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Profile picture for Ken Kopper
Bybee, are you looking for FHA or conventional loan? Depending on when you starting your new job, you maybe able to qualify for loan based on salary from new job based on a post closing paystub. Basically, you will need non-revocavble employment contract that clearly states your salary, start and date of 1st pay. Lender may accept this contingent on 1st paycheck being received to 1st payment on the loan coming due.

FHA guidelines allow for this but some FHA lenders may have layered guidelines that DO NOT allow for this. I have done this through conventional lenders that have accepted this but it was an exception that was made based on strength of borrower's application.

Hope this helps!
  • January 02 2009
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