Buying your first home, read about your first mortgage I

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 The challenge of buying your first home


With no mortgage, we will rich the ownership of a home only when we will be already retired. The mortgage is a loan taken to purchase a home for your family instead of renting a place to live as a tenant. Bank need to invest the money that was deposited by the savers. Banks pay interests and charge commissions from what the borrowers. The interest rate on mortgages must cover the risk that the bank is taking when it lends money to homeowners, and some of them do not pay back the loan and its interests. In other words, the bank sells the right to use the saver’s money to the borrowers that own the right to use the home the still own to the bank.

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Home with no mortgage

The challenge of buying your first home, first time home buyers are facing major, hard to overcome factors.

1. Lake of experience in purchasing the house or apartment itself, things like the quality of the building and the architectural design for their needs.

2. Low amount of savings for down payment.

3. Short or not exciting employment history, Pending student loans and other financial obligation that affects their credit score.

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Do not fear to buy your first home.

First home buyers purchase one of three houses in the USA market. If they can do it, you should be able to be one of this first buyers. An approved loan is not an impossible dream; it is a real option. Read USnews, How to Get a Mortgage With No Down Payment

Excellent home purchase with 30 years mortgage

Job history and future job, what history you need to approve a loan

The way to home loan pass through the Employment Offer Letter Mortgage. You may be surprised by the fact that a job offer can be that good for getting a home loan-approved
A basic rule in lending money is knowing the borrower is capable of paying back the loan. Your credit score shows that your essential will is to pay your loan. Your future employment is essential because the mortgage is for 10 to 30 years, it is a long time, so your future paying capacity is an important factor to take in an account by the Underwriters of your lender. Most of first time home buyers young people at the start of their working carrier, the possibility of growing and promoting in the profession they have is taking in account when a loan is approved or disapprove.

Countryside home

Last two-year employment rule

Lenders experience show them to look for at list two years of employment. This two years can have more than one job jobs. It is very common for you people to get jobs that need no special training or graduate while they are studying for their title. Let take an example of a computer engineer that did jobs of waiter while studying for his engineer title and now have only one year of employment in a software company. It is enough working history for the lender.

A ten years employment history would be taken as unsteady employment if you worked only one year as a professional then a few years as a waiter then got a gig job until a few months ago when you start a new job as a marketing coach. No doubt that your employment history his not convincing for a lender.

Your lender needs to see stable income that can produce the monthly payments for your mortgage for at list three years. Check Home Loan Eligibility

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Home can be a small hut.

How long you have to be working?

The minimum time of being employe depends on a few things. An FHA loan will be deferent than a regular mortgage. You may prefer the easier and look for FHA loan if you are short on employment history.


Less than two years of employment what could you do?

Though the rule of two years, it is not impossible that with less than two years of employment you will get an approval for a home loan. An applicant’s profile can show “positive factors” that have enough weight to move the balance to the approved side.

A positive factor for loan approval for less than two years of employment is your education. Four years degree and working in the same field as the degree. Your education is a working history. Newly graduated people have no problem to qualify despite being new employees.

Inform about a recent job change with a great letter that shows why your change of job has to do with the same carrier you started not long ago.

Take a note. A job or employment are only those that you work now or in the past, full-time with a salary bonus and overtime for two years.

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FHA loans to those who have no two years of working history

FHA is much more permissive about employment history. There is no requiring for history in the present job but the two years must be documented as the studies or military service, any gap should be cleared. 10 Valuable Lessons for First-Time Home Buyers

When you have an extended time with no job you need to at list six months in the present job and the two years work history prior the gap of no employment.

FHA lender will check the probability of your continuous employment looking at your past work and studies. It is important for the lender to confirm that you qualify for your employment and he can  expect that you will stay in this job for a long time or promote to a better one.

A decent house

Purchase or rent your home?

Answering this question depends on the reality of the person that is going to explain it. If you can get qualified you must take the option of renting and being a tenant. From the finance point of view, it depends on the cost of the loan versus the cost of renting a home.

This week we will publish the second part of this article

 PAYSTUBMAKR.COM team thanks you for reading this article.