home loan qualify

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My husband was granted working permission in December and was employed in January. He earns 4,000 a month and we have 16,000 saved for down payment. I am concerened that because has only had a job for 9 months (because he did not have a green card then) there may be no way we are going to qualify for a home loan. Can you let me know if i am correct and how long we must wait to apply for a home loan. Also, are there exceptions of programs for new U.S residents to buy a home?

Samantha · Posted: Thu Sep 29, 2005 12:11 am Post subject: RE

Hi,

What you are saying is absolutely right but in reality, getting your home mortgage approved depends on how your background matches the list of criteria set forth by the lender.

Although the rules that they have are not always entirely hard and fast, and sometimes the loan application officer does not stray too far away the guidelines he or she has been entrusted with. Important is, applicants should present themselves as creditworthy and have the adequate documented records to prove their point.

For getting a lon employment histroy is one of the most important factor which a lender generally focus at and as far as the employment goes, it has to be not less than 2 consecutive years within the same industry as most of the lenders look for stability and consistancy and your employment history gives them the idea of your capability to generate income to finance your mortgage loan.

But let me see if i can help you out or not as we have a community of lenders who specilize in various types loan programs, i will talk to some of them and if they show some interest i will forward your query to them.

God Bless you.

For MortgageFit
Samantha

Sam · Posted: Thu Sep 29, 2005 12:52 am Post subject: RE

Yes, Jackline I got your point and what samantha has said is also right we have to present ourselves in a better manner to qualify for a loan as what matters how we present our documents to the loan application officer.

These are some of the basic criteria to get your Home Loan Mortgage approved:

1. Employment History
What lenders see is how long you have been in the same industry, as that gives the idea about your financial strength and allow them to analyse your creditworthyness.

2. Credit History
The next important aspect is your short term debt like your credit card bills. Its fine if you have some debt in your credit card but what matters that you have been paying the dues regularly and on time. And too much debt on your credit card with credit lines fully utilized shows weaker financial strength. It is better to clean up your short term debt 6 months in advance before you go for a loan.

3. Outstanding Liabilities
Your earning indicates the amount of liability you can afford. As a rule of thumb, lenders stipulate that a person's total monthly payments for liabilities should not exceed 42% of his or her monthly earnings. So the important is in order to qualify for a mortgage loan its better to reduce the monthly payments on liabilities.

4. Cash and Asset Reserves
This is another point which lenders generally wanted to see as this will show how much you can afford for a home loan mortgage. They see that whether you have the minimum
resource so that at least you can make the payments for 2 months. Sometimes lenders go to the extent of requiring 6 months of reserves in order to qualify.

5. Existing Housing Repayments
Lenders generally see that if you have any existing housing rental payments, there should not be any late repayments for these within the pas 12 months. This shows you as a responsible tenant and is adequate proof to the lender that you potentially will be a responsible as well.

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