Debunk Common Mortgage Misconceptions: Income

Unravel the truth behind prevalent mortgage myths with our insightful guide. In this edition, we debunk the notion that a two-year employment history with the same company is an absolute requirement.

Understand these common income misconceptions when it comes to applying for a mortgage

Misconception: "I don't qualify; I haven't been with my job for two years."

Contrary to popular belief, there's no strict two-year requirement with your current employer. The key is demonstrating a stable income that reassures lenders about your ability to repay the mortgage.

Example:

Meet John, who worked at Company A for one year, earning a $5,000 monthly salary. He transitions to Company B and, after one year, boosts his salary to $6,500. John's new salary becomes his qualifying income, and his total two-year work history encompasses both Company A and Company B.

Tip:

While a two-year employment history is often standard, it doesn't have to be with the same company. Minimize gaps between jobs, maintain a documented job history, and safeguard W2s and final paystubs.

Misconception: "I'm changing jobs; I won't qualify for a mortgage."

If you're in the midst of changing jobs, qualifying for a loan is still possible based on your future income. Secure your eligibility by providing a signed offer letter from the new employer, including crucial details like the start date, rate of pay, and guaranteed hours if paid hourly.

Don't let misconceptions hinder your homeownership dreams. Navigate the mortgage landscape with accurate information and proactive measures. Stay tuned for more myth-busting insights in our series.