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I need advice from the experts regarding income

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mrsjr
Regular Contributor

I need advice from the experts regarding income

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!



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Message 1 of 6
5 REPLIES 5
Revelate
Moderator Emeritus

Re: I need advice from the experts regarding income


@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.




        
Message 2 of 6
Anonymous
Not applicable

Re: I need advice from the experts regarding income

As long as your education was in the field you're working in, that will count towards those two years.

Message 3 of 6
mrsjr
Regular Contributor

Re: I need advice from the experts regarding income


@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.



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Message 4 of 6
Anonymous
Not applicable

Re: I need advice from the experts regarding income

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.

Message 5 of 6
mrsjr
Regular Contributor

Re: I need advice from the experts regarding income


@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!



Starting Score: 601
Current Score: 739 TU
Goal Score: 800


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