Secret #9 - (Actually more of a myth)

People tell me all the time that they can't qualify for a mortgage because they haven't been on their job for two years. I usually respond "what makes you think you have to be on your job for two years?". The usual answer is something like " that's what i heard' or "that's what the last mortgage broker told me". Well guess what. Its not true. Let me explain.

Underwriting guidelines say we must verify a two year job history. They do not say a person must be on the (same) job for two years. Lenders are more interested in income stability over job stability. If someone has only been on their current job for a year, and they are making more money now than from their previous job of three years, this is perfectly acceptable and is actually more favorable than being on the same job for two years and making the same money. Does that make sense? It should, cause that's what it (Fannie Mae guideline) says!!

Why is this important? Many people are either talked into waiting to purchase (or refi), or they are talked into a sub prime loan with a much higher interest rate and a prepayment penalty. Either scenario could cost someone dearly.