Trouble getting a mortgage prior to starting job this Fall

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Anonymous User
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Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 6:39 pm

After graduating in May, we are moving to another city and my job starts in September. My wife starts her new job full time (~$45k) in May.

We were looking to buy a house at some point this summer, but I've had 3 or 4 banks now tell me that they can't give me a loan on my salary until I get my first paycheck. Apparently, Freddie Mac and Fannie Mae put new regulations in recently where they require a paycheck, or else they won't purchase the loans from these banks. This seems odd to me because I have an offer letter in hand from a well-known firm in this city, I have an excellent credit score, and I currently own a house and have never missed a payment (obviously in all this I'm assuming we sell the house before buying a new one).

Anyways, my issue with this is that until mid-September, at the earliest, we can only get a loan on my wife's salary, which is not a whole lot. In other words, to get the house we want, we're going to have to wait until after I've already started a Biglaw job and am probably working 70 hours a week to go through the process of buying a house.

I'd much rather get it done even 30 days before I start. Has anyone else encountered this issue? Are there maybe smaller, private banks out there that will loan at least 30 days out?

Anonymous User
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 7:41 pm

Why not rent for a few months (or even a year) until you start, then buy?

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 7:51 pm

Anonymous User wrote:After graduating in May, we are moving to another city and my job starts in September. My wife starts her new job full time (~$45k) in May.

We were looking to buy a house at some point this summer, but I've had 3 or 4 banks now tell me that they can't give me a loan on my salary until I get my first paycheck. Apparently, Freddie Mac and Fannie Mae put new regulations in recently where they require a paycheck, or else they won't purchase the loans from these banks. This seems odd to me because I have an offer letter in hand from a well-known firm in this city, I have an excellent credit score, and I currently own a house and have never missed a payment (obviously in all this I'm assuming we sell the house before buying a new one).

Anyways, my issue with this is that until mid-September, at the earliest, we can only get a loan on my wife's salary, which is not a whole lot. In other words, to get the house we want, we're going to have to wait until after I've already started a Biglaw job and am probably working 70 hours a week to go through the process of buying a house.

I'd much rather get it done even 30 days before I start. Has anyone else encountered this issue? Are there maybe smaller, private banks out there that will loan at least 30 days out?

NO Lender will lend the money without paycheck.

TooOld4This
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby TooOld4This » Wed Mar 06, 2013 7:55 pm

Anonymous User wrote:
Anonymous User wrote:After graduating in May, we are moving to another city and my job starts in September. My wife starts her new job full time (~$45k) in May.

We were looking to buy a house at some point this summer, but I've had 3 or 4 banks now tell me that they can't give me a loan on my salary until I get my first paycheck. Apparently, Freddie Mac and Fannie Mae put new regulations in recently where they require a paycheck, or else they won't purchase the loans from these banks. This seems odd to me because I have an offer letter in hand from a well-known firm in this city, I have an excellent credit score, and I currently own a house and have never missed a payment (obviously in all this I'm assuming we sell the house before buying a new one).

Anyways, my issue with this is that until mid-September, at the earliest, we can only get a loan on my wife's salary, which is not a whole lot. In other words, to get the house we want, we're going to have to wait until after I've already started a Biglaw job and am probably working 70 hours a week to go through the process of buying a house.

I'd much rather get it done even 30 days before I start. Has anyone else encountered this issue? Are there maybe smaller, private banks out there that will loan at least 30 days out?

NO Lender will lend the money without paycheck.


Not true. Some lenders are ok with using a letter of employment in underwriting, so long as the start date is relatively close to closing. It's a lot rarer now than it used to be, though.

OP, check with your firm and see if they have a relationship with a particular bank/mortgage co..

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cinephile
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby cinephile » Wed Mar 06, 2013 8:35 pm

Anonymous User wrote:Why not rent for a few months (or even a year) until you start, then buy?

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iShotFirst
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby iShotFirst » Wed Mar 06, 2013 8:40 pm

Same problem. Bank wouldnt let me do it either, but suggested that I find a seller who would be willing to sign the contract of sale now (backed up by a pre-qualification letter based on my salary/offer letter) and who would be willing to accept rent for the property for a few months before the sale price is paid.

I decided to rent for a bit first, but if you found a willing seller maybe this is an option ~shrug~

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 9:44 pm

Anonymous User wrote:Why not rent for a few months (or even a year) until you start, then buy?


We certainly considered that, but my wife is having a baby in late September. I'd really rather get our family home before the baby comes and while interest rates are low. Also, we have moved too many times already in almost 4 years of marriage. Frankly, I'm tired of moving and would prefer not to have to do it again after starting my job.

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 9:59 pm

I made this same thread almost word for word last year.

Unfortunately, in the end there was no way around it. We scheduled closing for the Monday after my first paycheck on Friday, my wife stayed in our LS city for two extra weeks, and I stayed in a hotel. Firm covered it as part of the relocation plan, though it was reimbursed, not covered up front. It was a hassle, but worth it. I was beyond tired of renting and was coming from a house in my LS city.

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 11:15 pm

Anonymous User wrote:I made this same thread almost word for word last year.

Unfortunately, in the end there was no way around it. We scheduled closing for the Monday after my first paycheck on Friday, my wife stayed in our LS city for two extra weeks, and I stayed in a hotel. Firm covered it as part of the relocation plan, though it was reimbursed, not covered up front. It was a hassle, but worth it. I was beyond tired of renting and was coming from a house in my LS city.

Dang, that's too bad. Thanks for the honesty.

The regulations must have changed right before you did this. From what bankers have told me, these more stringent requirements are pretty recent. Not long ago, especially for lawyers with an offer letter, they used to give loans 30 or even 60 days out.

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Void » Wed Mar 06, 2013 11:24 pm

Just stopping in to say that I have zero sympathy for your "problem."

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Wed Mar 06, 2013 11:31 pm

Anonymous User wrote:
Anonymous User wrote:I made this same thread almost word for word last year.

Unfortunately, in the end there was no way around it. We scheduled closing for the Monday after my first paycheck on Friday, my wife stayed in our LS city for two extra weeks, and I stayed in a hotel. Firm covered it as part of the relocation plan, though it was reimbursed, not covered up front. It was a hassle, but worth it. I was beyond tired of renting and was coming from a house in my LS city.

Dang, that's too bad. Thanks for the honesty.

The regulations must have changed right before you did this. From what bankers have told me, these more stringent requirements are pretty recent. Not long ago, especially for lawyers with an offer letter, they used to give loans 30 or even 60 days out.


Yep, I was told the regs changed in June and we closed in September. I applied for the mortage in July and expected to move in early August.

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holdencaulfield
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby holdencaulfield » Wed Mar 06, 2013 11:50 pm

I closed a week before I started working. I talked to 5 different banks before finding a smaller local bank was fine using my offer letter with the understanding that I would provide copies of my first two paystubs after I began working. After providing the paystubs, my loan was promptly sold to Chase. Of course... This all happened in 2011.

If you are in TX, PM me and I'll give you the name of the bank and loan officer I used.

alabamabound
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby alabamabound » Thu Mar 07, 2013 12:07 am

I'm having the same problem (or "problem," as it were). One bank is willing to close w/in 60 days of my start date. That's the best deal we've found.

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somewhatwayward
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby somewhatwayward » Thu Mar 07, 2013 12:44 am

Void wrote:Just stopping in to say that I have zero sympathy for your "problem."


srsly? he has a baby on the way and wants to get settled before starting a crazy job...seems reasonable to me

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Thu Mar 07, 2013 2:20 am

Check out Citibank "Home Run", but note that the program has some limitations (but within those limitations is a much better deal than the usual first time home loan).

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Thu Mar 07, 2013 9:26 am

alabamabound wrote:I'm having the same problem (or "problem," as it were). One bank is willing to close w/in 60 days of my start date. That's the best deal we've found.


60 days is fantastic. Did you just shop around with smaller banks? From talking with a few bankers, it seems like the bigger banks are completely opposed to doing this. Looks like you are using an AL bank? I'll be in GA.

We have also considered asking one of our parents to co-sign the loan, but I would only do that if an express condition to the deal was that they would get taken off the note after I furnished my first paycheck. I'm not sure if banks really do that.

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby guano » Thu Mar 07, 2013 10:12 am

Anonymous User wrote:
alabamabound wrote:I'm having the same problem (or "problem," as it were). One bank is willing to close w/in 60 days of my start date. That's the best deal we've found.


60 days is fantastic. Did you just shop around with smaller banks? From talking with a few bankers, it seems like the bigger banks are completely opposed to doing this. Looks like you are using an AL bank? I'll be in GA.

We have also considered asking one of our parents to co-sign the loan, but I would only do that if an express condition to the deal was that they would get taken off the note after I furnished my first paycheck. I'm not sure if banks really do that.

Just refinance. Edit: it'll cost you, but considering you're buying a home in a new city you've never lived in before (correct me if I'm wrong), you're already on the wrong track

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Thu Mar 07, 2013 10:17 am

guano wrote:
Anonymous User wrote:
alabamabound wrote:I'm having the same problem (or "problem," as it were). One bank is willing to close w/in 60 days of my start date. That's the best deal we've found.


60 days is fantastic. Did you just shop around with smaller banks? From talking with a few bankers, it seems like the bigger banks are completely opposed to doing this. Looks like you are using an AL bank? I'll be in GA.

We have also considered asking one of our parents to co-sign the loan, but I would only do that if an express condition to the deal was that they would get taken off the note after I furnished my first paycheck. I'm not sure if banks really do that.

Just refinance. Edit: it'll cost you, but considering you're buying a home in a new city you've never lived in before (correct me if I'm wrong), you're already on the wrong track


Well, my wife and I actually both grew up in this city (Atlanta). Both our sets of parents still live there. The rough plan right now is to move after graduation and live with parents until we get a house.

We really do not want to be living with them when my job starts, if it can be helped, and especially when we have the baby. That's why I'm so eager to try to get a house before my job. That's a good recommendation on refinancing. I just think living with my parents an extra month is short term pain that is worth the reward of not having to go through the trouble and costs of refinancing.

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby guano » Thu Mar 07, 2013 10:21 am

Anonymous User wrote:
guano wrote:
Anonymous User wrote:
alabamabound wrote:I'm having the same problem (or "problem," as it were). One bank is willing to close w/in 60 days of my start date. That's the best deal we've found.


60 days is fantastic. Did you just shop around with smaller banks? From talking with a few bankers, it seems like the bigger banks are completely opposed to doing this. Looks like you are using an AL bank? I'll be in GA.

We have also considered asking one of our parents to co-sign the loan, but I would only do that if an express condition to the deal was that they would get taken off the note after I furnished my first paycheck. I'm not sure if banks really do that.

Just refinance. Edit: it'll cost you, but considering you're buying a home in a new city you've never lived in before (correct me if I'm wrong), you're already on the wrong track


Well, my wife and I actually both grew up in this city (Atlanta). Both our sets of parents still live there. The rough plan right now is to move after graduation and live with parents until we get a house.

We really do not want to be living with them when my job starts, if it can be helped, and especially when we have the baby. That's why I'm so eager to try to get a house before my job. That's a good recommendation on refinancing. I just think living with my parents an extra month is short term pain that is worth the reward of not having to go through the trouble and costs of refinancing.

That's different. Also, I moved in 2 weeks before my first child was born and it sucked. Starting a new high-demand job at the same time is a nightmare. I strongly suggest pushing back your start date until December (yes, it sucks financially, but if you can make it happen it'll be worth it)

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Thu Mar 07, 2013 10:54 am

OP here: Well, it's funny how quickly things can change. I had spoken to 4-5 bankers that told me there was no way to get a loan on my salary until getting a paycheck. Then I randomly called this other bank in the city I'm we're moving to and he just said they can give me a loan 60 days before my starting date as long as I furnish the offer letter.

Wanted to pass on the good news to let others know that some banks are still doing this. Thanks for the advice in this thread.

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guano
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby guano » Thu Mar 07, 2013 11:14 am

Anonymous User wrote:OP here: Well, it's funny how quickly things can change. I had spoken to 4-5 bankers that told me there was no way to get a loan on my salary until getting a paycheck. Then I randomly called this other bank in the city I'm we're moving to and he just said they can give me a loan 60 days before my starting date as long as I furnish the offer letter.

Wanted to pass on the good news to let others know that some banks are still doing this. Thanks for the advice in this thread.

Are their rates higher? You might want to consider refinancing in about 6 months (or so)
If you get an FHA loan, you can do a "Streamline" refinance which is cheaper and easier

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Re: Trouble getting a mortgage prior to starting job this Fall

Postby Anonymous User » Thu Mar 07, 2013 11:35 am

guano wrote:
Anonymous User wrote:OP here: Well, it's funny how quickly things can change. I had spoken to 4-5 bankers that told me there was no way to get a loan on my salary until getting a paycheck. Then I randomly called this other bank in the city I'm we're moving to and he just said they can give me a loan 60 days before my starting date as long as I furnish the offer letter.

Wanted to pass on the good news to let others know that some banks are still doing this. Thanks for the advice in this thread.

Are their rates higher? You might want to consider refinancing in about 6 months (or so)
If you get an FHA loan, you can do a "Streamline" refinance which is cheaper and easier


No, surprisingly. It is just the standard 30 year, fixed-rate conventional mortgage.

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romothesavior
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby romothesavior » Thu Mar 07, 2013 11:43 am

None of you should be responding anonymously.

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yeast master
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby yeast master » Thu Mar 07, 2013 12:10 pm

Just a few months ago I spoke with a lender in TX that said I could close this summer before starting work as long as my first paycheck came before the first mortgage payment was due. So I could close in August as long as my first paycheck came before October 1. If the regulations changed last June, this would have been past that date.

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ExBiglawAssociate
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Re: Trouble getting a mortgage prior to starting job this Fall

Postby ExBiglawAssociate » Thu Mar 07, 2013 5:55 pm

Void wrote:Just stopping in to say that I have zero sympathy for your "problem."


LOL @ the aspies on this board.




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