topic Re: Help! Starting the mortgage process in Mortgage Loans

Help! Starting the mortgage process

Anonymous — Tue, 14 Jun 2016 23:17:00 GMT

I have been speaking to a realtor regarding building with a local builder. She pretty much said the builders agent wouldn't discuss anything with us until I get pre approved. We aren't wanting to start building until Sept so that we can move in March. Our realtor gave me the contact info for the builders preferred lender and he sent me a application but is it too early to get preapproval? Will it still be good in September when we are ready to start building?

Re: Help! Starting the mortgage process

Anonymous — Tue, 14 Jun 2016 23:19:18 GMT

Also, the lender mentioned that they have the option to only look at last year's income (I'm self employed) instead of averaging the last 2 years. Has anyone heard of this?

Re: Help! Starting the mortgage process

Anonymous — Wed, 15 Jun 2016 20:14:22 GMT

Anyone?

Re: Help! Starting the mortgage process

Anonymous — Wed, 15 Jun 2016 20:25:52 GMT

@Anonymous wrote:
Also, the lender mentioned that they have the option to only look at last year's income (I'm self employed) instead of averaging the last 2 years. Has anyone heard of this?

If you have been self-employed for the past two years, both years will be evaluated. I think the lender may be getting confused - you can sometimes use self-employed income with less than a two-year history IF your most recent tax returns reflect a full 12 months of income. But as a lender, you can't simply choose to only look at the most recent Schedule C when you were also self-employed the previous year.

Re: Help! Starting the mortgage process

Anonymous — Wed, 15 Jun 2016 20:36:54 GMT

How long would the preapproval be good for? We aren't wanting to go under contract until Sept so I'm hoping to avoid having another credit pull at that time.

Re: Help! Starting the mortgage process

Anonymous — Wed, 15 Jun 2016 20:38:39 GMT

Typically 90-120 days. If you don't close before that time period, your credit will need to be re-pulled. Kind of difficult to avoid with new construction that is several months from closing.

Re: Help! Starting the mortgage process

Anonymous — Wed, 15 Jun 2016 21:01:19 GMT

Yea I know it will need to be pulled again for final approval just trying to avoid having it pulled a 3rd time.