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First time home buyers w/o 2 year work history

Hello!

My husband and I are recently graduated dentists who have been working for the past 6-7 months. We both work as independent contractors and are paid based on our production. We would like to buy our first home, but have been told that we will not qualify because we don't have a two year work history since we've been in school. Is there anything we can do to buy a home on our own, short of waiting another year and a half?

One more question: My mother is willing to be a co-signer, but she was told by her bank that it wouldn't help us at all. According to the loan officer, the only way she could help us would be to buy a second home and let us live there. Was this guy correct? Or would she be able to co-sign? (Mind you, we really don't want to have anyone co-sign if possible).

Thank you for your help!
-Desperate to stop renting

eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Although you both do not have a 2 yr work history, some banks do allow education as a reasonable excuse. If you are working in your field of study and you can show consistent income since you started working, then you may qualify.

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jveenstra's picture
jveenstra | Joined: November 10, 2008 09:03 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I believe the reason you are being quoted that you must be employed for 2 or more years is because you are self employed. You do not have regular paychecks which would be the case with a W2 employee.
If you were a W2 employee you could be employed one month and be OK.
However, you are self employed as independent contractors and the guidelines for self employed reuire averaging the last two years income after expenses.

Your mother as a cosigner does not help the self employed scenario. If you were W2 employed and paid, a cosigner would help.

I do not know the size of mortgage you are looking for. FHA mortgages allow copsigners to qualify for 100% of the income required. FHA have limits as to their size by county, so, if the mortgage is over the county limit, that would not be a possibility.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We were hoping to qualify for an FHA mortgage. In our area, the limit is $365,700. We are only looking for a $200-300k mortgage. We really just want a started home at this time.

For the FHA loan, I understand that it is 3% down. If we had a larger down payment, does that help qualify us more? Or does it not really make a difference?

With regards to the comment, "FHA mortgages allow cosigners to qualify for 100% of the income required"...would you mind elaborating?

Besides a cosigner, is there anything else we can do?

Thanks for your replies!

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jveenstra's picture
jveenstra | Joined: November 10, 2008 09:03 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Mortgage lenders like high credit scores and large down payments and many months of reserves and income that can be verified properly.
No one of those things overcomes income that can be veriifed properly.
By properly, I mean, if you are self employed, two years history is required and after expense income reported to the IRS will be averaged for the past 24 months. With self employed, the first year of employment often has large business expenses and averaging that income after expenses (not gross receipts) often drags down the second year income.

FHA guidelines allow for co-signers to be 100% of the qualifying income. That means a relative who has enough income to qualify for your house debts along with thier debts, still meets the debt ratio requirement.
These days many lenders are stricter than the FHA guidelines allow. So, best to speak with a local broker if you have a qualifed cosigner (relative) who has enough money to qualify you and themselves.
A co-signer is someone whose income is used to help qualify. They are not on the title and not on the mortgage.
A non-0ccupant coborrower could be a little better. They do not live in the property, but, they are on tile and they are on the mortgage.
Once again, first you need the cosigner or coborrower, then you need to check with a local broker to see if any lenders do it. Just becasue FHA allows it does not mean lenders are "willing to do it"

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

john, i am in agreement. i would think that the "co-signer" thought was really addressing the non-occupant coborrower scenario you posed. it would seem an appropriate solution to their issue. being independent contractors, even in as lucrative a field as dentistry, isn't all that special when you are trying to verify income, as you noted.
i'd say that you ought to be able to find a lender to help you, newbie. we do this in our office, and we're nationwide, for example.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Based on your recommendations, I spoke to someone about having my mom be a cosigner and based on the numbers it looks like my mom will qualify--we didn't have them run any credit reports or anything at this time. She recently refinanced her home (actually just closed last week). We would like to move sometime in July or August. When would be the best time for us to start applying for pre-qualification? Does it matter how much time there is between her [url=http://www.mortgagefit.com/refinance.html]refinance[/url] and a pre-qualification application? (Should there be a minimum number of months, for example.) Thanks again for all your help. You guys are great!

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Btw, why would a coborrower be better than a cosigner? With my husband and I already on the title, would they allow a third coborrower?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

newbie, most discussions using "coborrower" and "cosigner" are using the terms in the same manner. however, a cosigner is more generally construed as someone who is guaranteeing payment, rather than actually having an interest in the loan itself. a coborrower, on the other hand, is actually actively involved in the process of the loan, and is simply "another" borrower along with the "borrower."

of course, most people consider cosigning to be relatively meaningless, but we know it isn't because people default on loans all the time, and when that happens on a loan that someone has cosigned, guess who gets a phone call looking for money! yup...the cosigner, who thought all he or she did was sign a paper and then forgot completely about it.
anyway...to answer that last question...no, adding your Mom as a third borrower is not useful - it's not disallowed, but if she's qualified to cosign, then let it be.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hey I only have 1year of work history and wanted a mortgage loan, would I still qualify? Or would I have to get a co-signer? And how would a co-signer help? Does the co-signer have to be first time home buyer?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Your query has been answered in the given link:

http://www.mortgagefit.com/firsttimebuyer/1yr-workhistory.html

Please take a look. Hope it helps you.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What if the 2-year work history ONLY comes from capital gains income, from trading in the markets. Self-employed status and tax returns report only capital gains income. Does that qualify for a conventional or FHA loan?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

sarah...I guess you should look out for stated income loan. But again getting stated income loans in this market situation is quite difficult. I would suggest you to speak to some of the lenders and check out if they can offer you stated income or no-doc loans.

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

This is true that getting a conventional loan for a self-employed people isn't easy as they often fail to provide the proof of their income. In this case, a stated income loan is a good option. But getting such a loan in this market is difficcult. Sarah, you need to get in touch with the few lenders who still offer such loans.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i'm not quite certain how capital gains would be viewed in the current economy. after all, how reliable is that as a source of income, given the wild fluctuations in value of investments?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello, I have been self employed for almost a year now, and I am trying to finance a mortgage of only $120K. I have $15K to put down. I was told I had to have 2 years of self-employment history (AFTER being pre-approved they realized that), which I don't. I told them I have my father who is willing to be a co-signor, who has a credit score of 786. They came back and said sorry, we have tried everything, but he will have to purchase the home himself and you can just be on the title. However, I am buying my first home right now because of all the incentives and I won't buy if I can only be on the title. I'm wondering if you know of ANY lenders that aren't so strict? I make plenty of money (about $4500/mo) to pay for a $700/month mortgage. I have very limited liabilities, maybe $500-$600/month. Any help is GREATLY APPRECIATED! Thanks.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

elaborate on your situation, guest. what were you doing in the beginning portion of those 2 years that was not employment? were you just sitting around, were you in school, were you raising a child, were you simply unemployed? that will be key, honestly, in trying to assess just what might be available to you.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well, here's what's happened since my last post--We applied for pre-approval (for an FHA loan) from a friend of a friend who happens to work as a loan officer at an out-of-state bank. We submitted all of our paperwork as well as that of our cosigner. 3 weeks later we find out that we shouldn't have even used that loan officer since FHA regulations require the lender to be in-state or an adjacent state from the location of the property. Now our application has to be transferred to an in-state branch of the bank for processing. My question is this: Should we even bother continuing with the bank application? Or is it time for us to look towards other lenders? Also, is there anything wrong with having an ongoing application with a bank as well as a mortgage broker? I just don't want to be penalized in any way. Obviously, part of it also is the fact that we've already sent in all of our paperwork and don't want all that effort to go for naught. (We also don't want to insult our friends who referred this guy at the bank...although, seriously, it took 3 weeks for him to know this information? He should have known and not wasted our time!) Let me know what you guys think.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

stick it out, but to answer the question about having 2 applications going at once - well, it's not the optimal situation, but if you feel the need, you can do that.

there are a lot of lenders who allow loan officers to do out of state loans and some who do not. the company i used to be with said i had to ship out my out of state loans, but i did a virginia fha loan without issue (and i am in connecticut)...so his error may not have been completely his own. it could have been misinformation by his company. we will probably never know the full details of the error, of course.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello me and my husband want to buy a home our credit sucks but we have a cosigner with a credit score of 650 with good employment history. Would she be able to co sign for us for a FHA loan? Also my husband has VA loan certificate could we use co signer with VA?His credit score is 534 with judgments. my credit score is 588 i just started a new job but i do have past work history so will i be able to get a FHA loan or VA with my co signer.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

So after we had been told to come back after we had 2 years work history by 3 separate lenders, we had resigned ourselves to waiting another year before trying to buy a house. About 2 weeks later, we were contacted by a broker who said that he could help. We sent him all of our paperwork and we were able to obtain a pre-approval if we only used my husband's W-2 income and therefore only put the loan in his name. We found a house we wanted to buy and had our offer accepted. We applied for a hard approval at the end of August. We were scheduled to close on September 30th. Here we are on October 2 still in underwriting and awaiting a clear to close. Supposedly we were approved, according to the underwriter on Sept 25th, but then they asked me to send in some of my information (LLC Articles of Org and stock portfolio). They still refuse to use my income because I have less than 2 years work history and only receive 1099 income, but they want to put me on the loan now. Our closing was rescheduled to yesterday, Oct 1, but was cancelled as our file was still in underwriting.

My loan officer/broker tells me that this type of ridiculous delay is becoming more common these days, but I worry that it is because they have changed their mind about approving us. They are only going off of my 2008 taxes where I had worked for 4 months and took a lot of tax deductions because we were just starting out with our LLC. Do you think I am being paranoid or do I have just cause to worry as much as I am?

A large part of me wishes that we had just waited until we had the 2-year work history to avoid this mess...

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

it is absolutely true that closings these days are delayed, and ridiculous is a valid way to put it, too. it's not that they change their minds, but that guidelines have changed over the months, and everything is looked at much more strictly.
i don't blame you for paranoia, if that's what it is; but keep the faith and just do what they ask and you should be okay (at least it sure seems that way).

as for 2 years out...who knows what we'll be looking at by then?

oh yeah...keep pushing and insisting on prompt closing.

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sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

That is absolutely true

It is not that the lenders do nto want to process the loan, it is just that there are new laws and also they are being cautious

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hopefully they will make a decision soon. We have already had 5 extensions because they couldn't meet our initial loan commitment date on Sept 3. Our most recent extension is to Oct 7. We worry that the sellers will stop agreeing to the extensions and just cancel our contract because everything is taking so long. I feel really bad for them...they've already moved out of the house and if we don't end up getting approved, I will feel bad that we've wasted their time...not to mention the time and money we've wasted.

It makes me feel better to know that we are not the only ones going through this headache, but I sure wish that we were lucky enough to be left out. Our broker has gone to his manager and he has supposedly contacted someone higher up at the bank. Unfortunately that doesn't seem to be doing much...do you know how we could get more done? It just seems to me that the lenders and underwriters don't care that we have deadlines that they are blowing right past.

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stev998's picture
stev998 | Joined: September 27, 2009 05:51 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i also hav 1 year history and i want t get fha lan an i qualify for this ?

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sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

FHA requires minimum of 2 years wok history and also a minimum of 620 credit score

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

newbie i have to say it sure does seem that nobody cares about deadlines. we see it all the way down the road, from loan origination to closing. yes, there are lots of demands made on the processors, underwriters and closers, but there does, indeed, seem to be a lack of concern over the meeting of due dates. it's definitely frustrating.

to stev: what is your prior history? that will have a great impact on whether or not you ought to move forward.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Just updating on my previous post---
The past few weeks have been crazy. After we were verbally approved, we were then denied after the underwriter decided to add me to the loan because the underwriter didn't expect me to have any debt (I have a car loan). Then the underwriter decided to approve us if I could prove that the car was paid by my LLC (which it isn't) so she then denied us again. It has been so stressful being told we were approved only to have the decision changed. Therefore, last week, we decided to ask if increasing our down payment would help. After resubmitting the new information to the underwriter, we were approved. I went to the loan officer last week and actually saw the loan approval letter. The underwriter just wanted bank statements to show that we had enough for the new down payment. Now we are once again waiting for the clear to close. We don't have a closing date set because our attorney has advised us to wait until we have a clear to close since we have previously scheduled, rescheduled, and then had it cancelled on us. Due to all of the insanity, my husband and I are even hesitant to buy furniture or continue packing. We haven't even told our family and friends because we don't want to have to retract our statement if we end up getting denied at the last minute again. At this point, do we still need to worry? We are approved and will be getting the house, right?

All of the bank statements were submitted on Thursday afternoon. On Friday, my broker said he received notification that it would take 24-48 hrs until we heard anything. He said that we would probably get a clear to close by Tuesday afternoon. If he gets the clear to close by then, how long will it take to actually close?

I wish that I could just be happy and stop worrying, but it has been such a frustrating few months that I am constantly worrying that things are going to go wrong again. Do I still need to worry or do you think we're in the clear?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i hate to say it, but you already know it, so i guess it won't be too surprising: don't count your chickens before they're hatched.

that 24-48 hour scenario sounds about right, and if you've given them what they've asked for, then you ought to be in the clear (not meant as a play on words here). please also don't think that a clear to close on tuesday means you close on wednesday. give them another 48 hours or more to get their paperwork together.

let me say this, and don't let it upset you further: the underwriter has no business making a decision that a borrower should or should not be on a loan. lenders cannot make that choice. the only way a borrower can be added or deleted is by the borrowers' choice. it's not a taboo to suggest that a file might be strengthened by the addition, as i hope was the case with you. you'd think that with underwriters being as scared as they are in this market that they'd think thrice before making rash decisions such as this. ah well...we don't know the vagaries of decision-making anymore in 2009, do we?

newbie, i hope you're okay here - it's sounding like that from what you've described. there's only so much stress a body or mind can take after all.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi George,

I'm doing ok, considering the emotional ups and downs. We still haven't gotten the clear to close so for now, I'm still on the edge of my seat waiting for progress. It's just so disappointing that these type of delays are still happening...it's just too reminiscent of the previous approved-denied cycle. I'm trying to keep my head up, but in the back of my mind is so much doubt and fear. It doesn't help that the friends and family that do know about our house purchase constantly tell me how ridiculous our situation is as if I haven't already thought all of the very same thoughts.

Regarding my addition to the loan--the underwriter said she would approve us IF I was added to the loan, only counting my miniscule 2008 adjusted gross income (only worked for a few months and took a lot of deductions). She absolutely refused to consider my 2009 earnings which are much more substantial. Then she saw my car payment which is more than the monthly income she calculated for me so I quickly went from an asset to a liability and she denied us. It was crazy.

Anyway, thank you so much George for your advice here. I will let you know when things move forward, once they finally do.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

So we've once again hit a rough patch---the underwriter suddenly doesn't think the house is worth the appraised value (and at this bank, apparently the underwriter IS the appraisal department as well). We just can't seem to get a break with this house. What options do we have? We've already invested so much time into this house...and we're just so close...but part of us is thinking of just calling it quits if we can't get around this underwriter. At this point, I once again wish we had just waited until we had the two year work history...

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sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

That happnes a lot now days

The property apprisal are changed after some time by the under writers to matchthe market condition

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

underwriters have to look carefully at appraisals - that's a given, so it's not a surprise to those of us who've been at this for a while. nevertheless, it's a big shock to a borrower. now, why did it take until now? that's anyone's guess, i'm afraid.

you've got a choice - you ought to be able to go back to the seller and renegotiate - assuming the value assigned by the underwriter isn't wildly lower than the negotiated price you had to begin with. i don't recall if you're doing fha financing or not; if so, you have every right to go back and renegotiate with the seller. here's the latest bottom line, i suppose: is this the only issue remaining? if so, then try to resolve it to your benefit and get closed. if you can be assured of that, at least you've got a leg up on the process (for once).

this is miserable, and though it's no consolation, it's typical of the market now. i've lost 3 deals in the last week for a variety of wacky reasons. keep in mind, now, that every deal is like a jewel to a loan officer. and we don't carry insurance in case of loss - they just drift away (agonizingly slowly).

newbie, i feel for you - this is an awful position to be in - wondering and waiting and then to have ups and downs along with the wait. i hope there's light at the end of your tunnel finally coming.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

forgive me my digression in the midst of my answer to you. your frustration simply brought to mind the frustration i am feeling.

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sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for sharign the details George

I am sure lot more people are out there who are frustrated like you and newbee

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The underwriter valued the house $25K below the appraised value. After escalating the issue to corporate, we were get the value to $10K below. The seller is willing to accept that price if we agree to proceed without a mortgage contingency and put our earnest money at risk if this deal still falls through. Considering how unpredictable the situation has been thus far, my husband and I are very wary of risking our $5,000. We are waiting to hear back from the lender with hopefully verification that there are no other issues besides the purchase price issue. Once we have that, we would feel better about agreeing to the seller's request. I just hope that the underwriter responds quickly, for once. Until then, we really just have no idea what's going to happen.

Do you think that the underwriter just doesn't want to approve our loan and has been just trying to find ways to deny us?? (Or do you think that this is just too much effort to try and sabotage someone?) Maybe the underwriter has something against dentists?? Have you heard of someone going out of their way to make sure that a loan gets denied?? Maybe I'm being paranoid...

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

your paranoia is somewhat understandable. however, i'd certainly hope that there's no underwriter on the face of this earth who would deign to deny someone at all costs. no, i don't think this underwriter is looking for ways to decline the loan. i don't think too many people have issues with dentists, except for those who (oh lord, my childhood) are just plain butchers. forgive me, again.

i agree with your stance that you ought not to risk your $5000 at this time. wait and see what the underwriter says about other, potential issues that are in play, and then move on. the seller isn't quite that realistic to ask this of you, in my opinion. this $10K below price isn't unheard of - that's for sure. if you can get a reasonable answer from underwriting that makes it worthwhile to move forward, then you ought to (i guess - this is just my thought).

remember this: even though it may not seem that way all the time, lenders are in the business of lending. they want to make loans, not deny them. underwriters are quite wary of risk, and they are also concerned about their own skin (unfortunately). if they approve loans that go bad, they'll look bad. frankly, i think way too many underwriters are just plain scared these days.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As of last week, the seller had given us until this Friday morning (the 13th) to close (we had to guarantee them $1K if we didn't close) and then yesterday the underwriter hit us with another condition. Now she wants us to be "gifted" our down payment because she doesn't want to use any of my self-employed income due to the fact that I deposit my paychecks into a "business" account. So even though we have the money, we can't use it. How ridiculous is that? And of course, she has to insist on this the day before Veteran's Day so we have to lose another day. We just can't catch a break. Now I have to try getting a cashier's check from a relative, send my broker the copy of the check and the gift letter, have him send it to the lender, and somehow get all the paperwork ready for a closing bright and early the next morning.

How likely is this to happen? In my mind, it's not gonna happen considering how long the bank takes to respond to anything.

We were told last week that we either close on Friday or that's it for the house. At the time, it seemed that we were so close that we decided we might as well try one last time for it. However, sometimes it just seems that this underwriter is trying to make things so impossible that we give up. I know that the lenders are in the "business of lending," but things just look so suspicious. There are so many recent issues that could have been addressed easily weeks or months ago. Instead, she waited until the last minute, literally (like 5 minutes before 5pm). For the most part, I've been able to get everything she requested relatively quickly (within a few hours at most), but then we have had to wait for her to respond...with yet another condition. It's been crazy.

When this is all said and done, regardless of whether or not we get the house, I definitely want to complain. I think that this situation has been ridiculous and severely mishandled.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:29 | Post subject:

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gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

well, you posted this yesterday, and it's now 4:30 here on the east coast on thursday - not much time before the workday is over and your closing is to be tomorrow. i can't be much help with whatever it is i may say (and i don't know what that is, yet).

hopefully, you were able to submit what you needed for first thing this morning, and hopefully you have someone working on your behalf who can persuade the underwriter to review all of what you sent quickly. and, again, i hope that all is, by now, rectified and that your closing will go off tomorrow without a hitch.

by all means, register a complaint. i don't know what the upshot of it will be, but you'll feel better (a bit) at least.

i hope this works for you.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:29 | Post subject:

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been an independent contractor(not by choice) for approx. 1.5 years. I am employed and paid by the spa i work out at. I just have to pay my own taxes. Does that make a difference than an actual Self-Employed person. Is there any way i can get around this? I want to be preapproved ASAP!! Also i am a first time home buyer. What loans and programs are best for me? How long does is the tax credit going to last?

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gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

kelly, do you file a schedule c on your tax return? that's what will define you as self employed. do they provide you with a form 1099 at the end of the year? generally, someone in your line of work would be considered self employed as a result. getting around it isn't an option.

the tax credit works this way: you must be in contract to purchase a home by april 30, 2010 and you must close on that purchase by june 30, 2010.

you may not have the 2 years of self employment required by lenders. what did you do prior to becoming an independent contractor? if it's the same line of work, you may be able to get by with the time you've spent on the job. it's a tricky situation, and i'd suggest you maximize your income on this year's taxes, while minimizing deductions so as to qualify for the greatest amount.

it may just be time for you to sit down with a loan officer and see what you might qualify for now.

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sorry it has been so long since my last posting. I just wanted to let you know that our situation has been resolved favorably and we closed on the house on Friday, Nov 13th (the deadling the sellers had given us). It really came down to the wire:

On Wednesday, after submitting the requested documents to my broker, I waited patiently for any reponse. As of Thursday morning, we still had no answer. By noon, my broker let me know that we would have an answer by 5pm. At 5:10, I finally got that fateful call and was informed that we were going to close the next day. Even on Friday, it was still dodgy and we didn't even have all the paperwork ready for us to sign until 4pm. Thankully, though, this ordeal is done. We are very happy with our new home...and grateful that we will not have to go through this again...at least not until we decide to move :-)

Thank you again, George, for all of your advice and words of encouragement through this challenging time. You are a Godsend to all of the people in real estate limbo!

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sorry it has been so long since my last posting. I just wanted to let you know that our situation has been resolved favorably and we closed on the house on Friday, Nov 13th (the deadling the sellers had given us). It really came down to the wire:

On Wednesday, after submitting the requested documents to my broker, I waited patiently for any reponse. As of Thursday morning, we still had no answer. By noon, my broker let me know that we would have an answer by 5pm. At 5:10, I finally got that fateful call and was informed that we were going to close the next day. Even on Friday, it was still dodgy and we didn't even have all the paperwork ready for us to sign until 4pm. Thankully, though, this ordeal is done. We are very happy with our new home...and grateful that we will not have to go through this again...at least not until we decide to move :-)

Thank you again, George, for all of your advice and words of encouragement through this challenging time. You are a Godsend to all of the people in real estate limbo!

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gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i got the notification that there was a post on this topic - mentally noted that i hadn't seen anything on it for a long time...and, of course, i didn't remember the topic at all until i logged in and saw your latest post.

i'm gratified that it all worked out. now that 2+ months have elapsed, you've had some time to get accustomed to the home and attempt to becalm yourselves over the stress you went through. i have to say you were handling all that nonsense reasonably well back in the fall (doesn't that make it seem longer ago?).

your last-minute notification, delayed closing on the actual date of closing...all this is so commonplace now that i'm fearful that it may become the way of the future. it looks like closing departments, processors, underwriters, department heads...pick 'em all...have come to the conclusion that it's reasonable to hold people's minds and hearts hostage while they decide whether or not to close on time...and more problematic - whether those loans get funded on a timely basis.

i'm very pleased to see a good report, and i thank you for your kind words. i'll take encouragement from them as well. i pray your talk of moving is something you'll only consider after a loooooong time in this home.

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

George,
My husband and I definitely don't plan to move for a long time :-) I have a lot of friends who are looking to buy in the near future...I hope that they don't go through similar turmoil.

We are happily settling into our new home. To be honest, it seems like we've lived here for much longer than a few months. Thank goodness all of the nonsense is over.

Thanks again, George.

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gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

don't go scaring your friends, though i suppose they already are aware of your ordeal.

nonsense never ends - it's always there, hovering over us, waiting to pounce. oh wait...that's the devil i'm talking about!

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