12/30/2021
What mortgage advice would you give borrowers with poor credit, unstable employment history, or a small down payment?
It’s always good to think like a lender if you’re worried your mortgage may not be approved. Learn the most common reasons a mortgage is denied and what you can do to address each issue. Improving your credit score and saving more money for a down payment can take some time, but government-backed loans (such as Federal Housing Administration loans) or adding a co-borrower could keep your mortgage plans right on track.
Stable employment will make it easier for you to make regular mortgage payments but this can sometimes be difficult to show when you’re self employed business owner There are a number of reasons why employment history can look unstable—some of them are simply due to the nature of the work. Two is the magic number when it comes to employment history: Lenders generally want to see documented income for a minimum of 2 years. This could mean submitting pay stubs if you’ve been with an employer, or at least within the same industry, for a minimum of 2 years. If you’re self-employed, this could mean submitting 2 years of tax returns plus additional business documentation. If the amount you earn doesn’t match the amount reflected on your tax returns, it could be an issue, so speak with a lender to see what you’ll need to qualify for the mortgage you want.
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