So often there is a job change that is happening at the same time as a new home purchase. All of these folks coming to the Austin area buying homes are often starting brand new jobs too. That can cause a real problem for mortgage financing, but we have answers that other lenders don’t!
Many lenders won’t allow income from the new job unless the client has started the job AND has 30 days of paystubs in hand. That’s great if the client has that flexibility, but so often clients want to close sooner than that.
This very issue came up with a client last month and we were able to close that one with just one partial paystub in the file. This option worked fine for this transaction but while we were working that out I checked with some of our other lenders (as a mortgage broker we aren’t stuck with just one answer from one underwriter!)
……..Best answer I found is being able to close after just one day on the job……
That can work well for a lot of our clients. Here’s what we would need to show:
1. Employment contract signed by the employer and the employee showing the start date, job description and salary
(probationary periods or non-salary or commission income can raise problems)
2. Verification of employment confirming the borrower’s terms of employment.
3. Then a verbal verification on the first day of work that the borrower has actually started the job.
This scenario is for conventional, conforming financing only and of course is subject to all the normal credit approvals and review.
Send a client to us and don’t wait for all those paystubs...... :)
This very issue came up with a client last month and we were able to close that one with just one partial paystub in the file. This option worked fine for this transaction but while we were working that out I checked with some of our other lenders (as a mortgage broker we aren’t stuck with just one answer from one underwriter!)
……..Best answer I found is being able to close after just one day on the job……
That can work well for a lot of our clients. Here’s what we would need to show:
1. Employment contract signed by the employer and the employee showing the start date, job description and salary
(probationary periods or non-salary or commission income can raise problems)
2. Verification of employment confirming the borrower’s terms of employment.
3. Then a verbal verification on the first day of work that the borrower has actually started the job.
This scenario is for conventional, conforming financing only and of course is subject to all the normal credit approvals and review.
Send a client to us and don’t wait for all those paystubs...... :)
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