Maureen Wade's Blog
76 Walnut Avenue, North Hampton, NH 03862
There are so many factors that go into buying a home. How much money do you have saved up? What is your debt amount? Hw much money do you make each month? Can you afford the neighborhood that you’d like to live in? All of these questions are swirling around the minds of all first-time homebuyers. Did you know that how long you have been at a job is just as important as your income as a factor in getting approved for a mortgage?
Your ability to repay is why the lender is looking at so many different numbers and factors about your financial situation. Employment overall plays a large stake in the mortgage application. Lenders will look at your past employment history along with the job that your currently have. They are also concerned with your future employment status. Your lender will get an idea of your overall plan for your career and employment through looking at your history.
As a first-time homebuyer, you most likely don’t have the employment history of more seasoned homebuyers. Generally, most people who are buying a home for the first time are pretty young in their careers. As a rule of thumb, lenders will look at your employment history over the past two years. The lender wants to see your industry focus. Maybe you have stuck with one career direction, or maybe you have hopped around a bunch. As a hint, jumping around from job to job and field to field doesn’t look very good to mortgage lenders. Job floaters tend to appear as if they have no plans for the future.
Good Career Moves
Staying a software engineer, but moving from the medical industry to the financial industry is an acceptable and smart move in the eyes of lenders. Yet, leaving your stable job in accounting to pursue a career in acting would not be looked upon favorably in the eyes of a mortgage lender.
It doesn’t matter how much money you have saved up, often, without employment history, a lender may not consider you as a dependable buyer. Your lender wants to see that your income is stable for a period of at least three year’s time.
You won’t have the same work history as a first time homebuyer as you would if you were a bit more seasoned. When lenders look at your income history, not having a lot of work history can be a detriment to many factors. If your income is an annual salary, for example, your lender will divide that salary by 12 in order to get a monthly income. If you haven’t been at the job for a full year or took a pay cut during times of training, those numbers will be affected.
For hourly employees, overtime may be a problem as it may not be factored in with the equation if there isn’t a history of at least two years on the job.
While it isn’t impossible to buy a home with a short employment history, it’s advisable to wait until you have some significant time under your belt before you dive into the home buying process.
- New Hampshire has no state tax - Shop at New Hampshire department stores, antique shops or roadside retailers without worrying about the added costs of state sales tax.
- Four seasons - Buy a house in New England and you'll enjoy all four seasons. There are scented blossoms to watch pop open up during spring, filling the area with amazing sights, beaches to visit during summer, millions of leaves to watch change hues during Autumn and ski slopes to race down come winter. Regardless of where you are from, you'll find a season in New England to love.
- Ivy league colleges and universities - New Hampshire's Dartmouth College, Massachusetts' MIT (Massachusetts Institute of Technology) and Connecticut's Yale University are all located in the New England states, putting a top postsecondary education within commuting reach.
- Coffee and donuts - Dunkin Donuts opened its first store in Quincy, Massachusetts. Now, you have another reason to feel good while enjoying a cup of Joe.
- Long trusted news - America's oldest newspaper, The Hartford Courant, is in Connecticut. The newspaper is still printing out great stories.
- Dairy - Vermont has more dairy cows per person than any other place in America.
- Location - New England states like Maine and Vermont are next door to Canada. Maine is also close to a hosts of islands, making a beach side vacation only a few hours away.
- Blueberries - Maine grows more blueberries than any other state. Love blueberry pie or blueberry muffins? Make New England home and you could enjoy a bounty of delicious locally grown blueberries.
- Let's play the lottery - Playing the lottery (also referred to as "the numbers" years ago) used to be illegal. It was New Hampshire that first legalized the lottery; the year when the lottery went legit in New Hampshire was 1963.
- History - Starting with the American Revolution, you'd be hard pressed to find towns that have as much history as New England cities. There's Fort George, the Strawberry Banke Museum, the Salem Witch Museum, Mount Washington, Freedom Trail, the Robert Frost House, Walden Pond and Bunker Hill, to name a few.