A little wisdom from Shane or DallasLG for Mortgage

[Anonymous]

Well here is my question I am currently deployed overseas and will be back home next year my family has outgrown the house we are in now so I would like to get into something better sometime after I get back. First on the civilian side I have worked at my current job since may of 07 but I was layed off from Jan 09 till may of 10, I have been in the army national guard for 11 years. I was recalled back to work the same month as I was deployed and my company is paying me the difference in pay while I am overseas got to love double dipping. That is one issue being layed off for a year and 4 months. But I have done a lot of work on my credit and my scores are currently TU 704 EQ 692 EX fako 703 I hope my scores will be even higher next year I have one CO and it will be 3+ years old and my income while I am deployed will be gross about 80,000 my credit uti is 2% and my DTI is about 18%. When I resume work at my civilian job my income will be roughly the same and due to retirement and people not returning after the lay offs my company does not see any further lay offs and is actual hiring right now. So I wanted to get your take if I should wait a year or so after I get back or if I could try sooner.

[DallasLoanGuy]

sorry, but that employment gap will not fit guidelines.

[Anonymous]

Well Dallas thank you for the response to my post well if I don't fit guidelines per my employment gap, a part of my post was what do you and shane recommend wait two more years after I get back in may of 2011 or can I wait a year, and what would you or shane recommend I can do to further groom my finances and credit to be ready to talk to a LO or broker and have all my ducks in a row paperwork etc.. before I pull the trigger. I have been told also be other people that some lenders won't like the gap but I can show I have been employed with the company for a total of 4 years including the lay off. Having a really small three bedroom house it's probable a little over 1100 sq Ft its small for 5 people just want some overall advice to chart my path to 1st time home ownership thanks.

[DallasLoanGuy]

work on saving.

with the good scores, that is the best thing that you can do for yourself. cash reserves are very good.

if you are actually now employed, buton leave for the nat guard, then that employ counts. so it would be only a 1yr wait.

not 2

[Anonymous]

Thanks Dallas Appreciate your posts and time.

[Anonymous]

So what's the problem with the employment gap?  I know someone who has been in the same profession for 25 years, and he had to take a family medical leave of absence for over 6 months last year  without pay then returned to the same employer. During the time he was on leave, they lived off reserves and had bank statements to prove that they withdrew their monthly expenses say $2000 each month from their savings, were never late on any bills, and still had over $10,000 left in reserves once he went back to work with a 30% raise.  This person was approved for a mortgage this year, all he had to do was write an explanation for the gap, and the lender was quite impressed that he could honor his financial obligations because he had saved for a rainy day.  

 Is an employment gap only an issue when it  has caused financial hardship?

[DallasLoanGuy]

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@Anonymous wrote:

So what's the problem with the employment gap?  I know someone who has been in the same profession for 25 years, and he had to take a family medical leave of absence for over 6 months last year  without pay then returned to the same employer. During the time he was on leave, they lived off reserves and had bank statements to prove that they withdrew their monthly expenses say $2000 each month from their savings, were never late on any bills, and still had over $10,000 left in reserves once he went back to work with a 30% raise.  This person was approved for a mortgage this year, all he had to do was write an explanation for the gap, and the lender was quite impressed that he could honor his financial obligations because he had saved for a rainy day.  

 Is an employment gap only an issue when it  has caused financial hardship?

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different scenario....

6 months can be sold as a choice.

A yr & 1/2 is a hard sell.

REMEMBER........ I make judgment calls based on information in the posts here..........

If the OP told me that he took off and went backpacking across europe and then came back to his job.... i may have answered differently.

guys... this is a discussion forum. i dont know you..... but i KNOW guidelines.... so does Shane.

a lot of our answers are based on very little info.

ome.

oh.... btw, gaps for leave to serve your country or have a baby? that doesnt count. i would put a pipe bomb in my underwriter's car if they denied for something like that.

as ALWAYS..... please expound as much info as possible

i once approved a lady with 6 months employment. she didnt work for 15yrs to raise kids at home. she 're-entered the workforce' in the same industry that she had experience and the u/w didn't bat an eye

there are LOTS of loopholes

there are LOTS of pitfalls

&

there are a lot of 'Yes Men' in this biz..... i try to give a less than optimistic answer to your posts.

[Anonymous]

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@DallasLoanGuy wrote:

...there are a lot of 'Yes Men' in this biz..... i try to give a less than optimistic answer to your posts.

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THANK YOU!!! I would rather hear an honest NO than yes yes yes from a loan originator - only to get that resounding NO from the underwriter. Those underwriter no's are expensive!