Profile picture for user734318

Two questions: Job Hopping and a credit check

My husband and I are positioning to buy our first home. We have one last student loan we want to pay off first (by the end of the month) before we do our preapproval. We have been doing our research for over a year now and feel pretty comfortable with our knowledge on the subject, but there are two questions that have come up  that we are having a hard time getting answers to.
First, we are both new to our jobs. He was accepted into his "career job" last summer as a firefighter. Before that, he worked for 4 years at an RV resort. And for me, I jumped around a bit more, I have worked 4 different jobs in the past 4 years. In each one, it was the same field where I was getting promotions. I have finally left the world of retail for a position matching what I am going to school for. Will (my) moving around hurt us when we preapprove?
Second question is: We just financed a purchase, so our credit was checked. Will this hurt our preapproval also? Our total debt to income ratio is 11% and that includes the purchase we just financed. We decided to finance instead of paying up front because we had already planned to pay off the student loan which has a higher interest rate.
Any advice would be appreciated. Thank you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2012 - Rita Ranch
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

Hi, there are umerous factors that are considered in the approval process. Some can be changed others can not. I would not worry about what you can not change. I will simply talk to a mortgage broker that works with a number od mortgage coms instead of just one. That way you will get the straight answer.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2012
Congratulations on being an informed buyer and working hard toward your goals.  Job hopping sometimes does hurt, but if you stay in the same field it is usually a wash.  As both you and your husband are in your career fields, this should not be a problem.  However, all lenders have different criteria and your lender can give you the best advice.
With an 11% debt-to-income ratio as long as your credit score is high enough having your credit checked will not hurt you.  Again, your lender can give you the best information.
Be sure to check for all the first time buyer's down payment assistance programs.  The Federal Home Loan Bank of San Francisco's WISH program is one to check as it is a matching program.  Also, there is a low interest rate available for first time buyers.  Hope this is somewhat helpful.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2012
user734318 / FIRST / Should you have a problem with an "AGENCY" Loan / FHA / VA / Fannie Mae / Freddie Mac / You may be OK with a Portfolio Lender (FDIC Chartered Bank or Credit Union)

Usually they require 20% down / Some will lend with only 10% down / They do not Sell Their Loans / They Lend by Their Rules

SECOND / Do not be concerned with your recent purchase on credit / A 11% debt-to-income ratio is GREAT

Happy house hunting / Rudi
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2012
Profile picture for B Mike West
Congratulations on approaching this subject the smart way.  Lenders want borrowers to have been in the same job for two years or more, unless a job change is in the same line of work (changing from a city fireman to a forestry service fireman).  Since you will both probably be on the loan this requirement will apply to both of you.  You will be wise to pick a job and stick with it.

While you are accruing time on the job you can start putting some cash away for a down payment. 

It is not a good idea to incur additional debt before you apply for a loan. If your DTI (debt-to-income ratio) is already at 11% without a home loan, you are going to be limited to the amount you can qualify to borrow.  Some lenders do not want your DTI (home loan included) to be over 31% but some will allow it to go up into the low 40%s IF all other factors are good.  So DO NOT buy a new car, boat, time share when you are trying to qhalify for a home loan.

I understand that it is difficult to plan that far ahead, especially when you are young.

Jennifer makes an excellent point.  If you select a local loan consultant that you can trust, they may be able to find you a loan that has less stringent loan underwriting requirements.  The government comes up with programs for first time home buyers from time to time.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2012
For a first time home buyer, I want to congratulate you on your homework.

Changing jobs to a different line of work could definitely hurt you. However, it is going to depend on other factors of your qualification as well. It may not be that bad.

Taking your situation to different lenders now is my best recommendation. They don't have to pull your credit to figure out if you will work well with them and their programs. You must be honest with them and tell them as much as you can so they can get a clear picture.

Find a loan officer that not only gives you the best terms/interest rate, but one that really listens to you. The more questions they ask of you, the more proactive they are.

Once you are comfortable with a loan officer and have chosen to work with only them, the best way for them to give you the most accurate prequalification is to pull your credit. There is no getting around it. You will have to do it for the prequal and usually they pull it again before or at closing.

During the entire transaction process of being in contract to purchase a home, you want to avoid any purchases where pulling your credit is required. Always run such purchases through your lender before you make them.

I am a bit bias as a realtor when I say this next comment. Another way to start this whole process is to find a realtor you are comfortable with first. That realtor will probably have a lender or two they trust to take care of their clients and to communicate with them. You will be putting a team together and it's great to know the communication is there. Once your team is in place, all the questions you have will be answered and everyone will be on the same page. This makes for a more efficient process.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2012
 
Related Questions
Two questions: Job Hopping and a credit check
Profile picture for Maria Avellaneda
Latest answer by Maria Avellaneda
March 05 2012 | 5 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 7643 S Athel Tree Dr, Tucson, AZ Home For Sale
    7643 S Athel Tree Dr, Tucson, AZ 85747

     For Sale: $169,900

    • Beds: 4
    • Sqft: 1538
    • Baths: 2.0
    • Lot: 6969
  2. 9580 E Baber Ln, Tucson, AZ Home For Sale
    9580 E Baber Ln, Tucson, AZ 85747

     For Sale: $185,000

    • Beds: 4
    • Sqft: 1901
    • Baths: 2.0
    • Lot: 6534
  3. 9550 E Adare Ln, Tucson, AZ Home For Sale
    9550 E Adare Ln, Tucson, AZ 85747

     For Sale: $211,500

    • Beds: 4
    • Sqft: 1956
    • Baths: 2.0
    • Lot: --