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Hi, all. I am interested in applying for a mortgage later this year, but I'm afraid that I might run into an issue regarding income. Last year, I was a graduate student and my income was quite low (not enough to qualify for a mortgage by far). I started my new career this past January, and I am currently in a teaching contract making enough to qualify for a mortgage. I plan to remain in this field until I retire. So, since I had very little income last year, will I need to wait two years before applying for a mortgage? I read that you need two years of qualifying, verifiable income. Is this true? Thanks so much for your help!
@mrsjr wrote:Hi, all. I am interested in applying for a mortgage later this year, but I'm afraid that I might run into an issue regarding income. Last year, I was a graduate student and my income was quite low (not enough to qualify for a mortgage by far). I started my new career this past January, and I am currently in a teaching contract making enough to qualify for a mortgage. I plan to remain in this field until I retire. So, since I had very little income last year, will I need to wait two years before applying for a mortgage? I read that you need two years of qualifying, verifiable income. Is this true? Thanks so much for your help!
As I understand it, qualification income for standard W2 employment is based on your last 30 days of paystubs (for many / most lenders); also in your case as a teacher you can likely apply your scholastic experience as "work experience" (since I don't know any state where you can become a teacher without going through the credentialing process) and get around any employment hurdle, but it may depend on specific lender. Should be fine, just talk to a few lenders when you're ready to go.
As long as your education was in the field you're working in, that will count towards those two years.
@Anonymous wrote:As long as your education was in the field you're working in, that will count towards those two years.
Thank you! My job is in my field.
My spouse was in the same boat as you. Grad student, finished school, took a job in his field. All we were told to provide was 2 months of pay stubs reflecting current salary. You'll be fine.
@Anonymous wrote:My spouse was in the same boat as you. Grad student, finished school, took a job in his field. All we were told to provide was 2 months of pay stubs reflecting current salary. You'll be fine.
That's good to hear. Thanks for sharing!