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Getting a mortgage fresh out of college

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Anonymous
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Getting a mortgage fresh out of college

I'm wondering about the feasibility of geting a mortgage loan fresh out of college. I feel like this is a bit of an unusual sitatition, but the key is that I have a good job I'm starting in July ($60k/yr), but until then, my income is rather low. My wife and I both work part time, and my job is technically doing contract work. I'll be graduating in May with a degree in Economics and minor in Computer Science (and my job is more in the latter).

 

We're looking at getting a house in the $100k - $150k range, which seems reasonable for what our income wil be, and we have over $10k saved so far for the down payment. We've only rented so far, and before that were in dorms at college. We both have credit scores, at least TU which I have verified, in the 700s, but not a lot of history. Is it reasonable to be able to get a mortgage around the time of starting my new job, given that I'll not have the income yet? Or will it make more sense to wait?

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Anonymous
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Re: Getting a mortgage fresh out of college

You need to have at least 3 tradelines reporting for the past 1-2 years. If you have this, then with an occupation related to your studies, you should be fine. Of course, don't trust what I say and call arount to different lenders (big box banks, mortgage bankers that do own underwriting and don't sell the loan) to see what they require.

Message 2 of 4
Anonymous
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Re: Getting a mortgage fresh out of college

I'd wait till I was in my career field at least a year.

Message 3 of 4
StartingOver10
Moderator Emerita

Re: Getting a mortgage fresh out of college


@Anonymous wrote:

I'm wondering about the feasibility of geting a mortgage loan fresh out of college. I feel like this is a bit of an unusual sitatition, but the key is that I have a good job I'm starting in July ($60k/yr), but until then, my income is rather low. My wife and I both work part time, and my job is technically doing contract work. I'll be graduating in May with a degree in Economics and minor in Computer Science (and my job is more in the latter).

 

We're looking at getting a house in the $100k - $150k range, which seems reasonable for what our income wil be, and we have over $10k saved so far for the down payment. We've only rented so far, and before that were in dorms at college. We both have credit scores, at least TU which I have verified, in the 700s, but not a lot of history. Is it reasonable to be able to get a mortgage around the time of starting my new job, given that I'll not have the income yet? Or will it make more sense to wait?


Techanically if you get a job in your new career right after graduation you can get a mortgage right away, but the lender usually wants to see at least 3 tradelines reporting for a year as posted above. The lender can either use your letter (difficult) or 30 days of paystubs in your new job. It is easier with the paystubs to supply.

 

Why don't you get the 3 mortgage scores here so you know where you stand from a credit basis? Make sure to review the mortgage scores (further down in the reports) rather than the FICO 08 scores which are not used by mortgage lenders. http://www.myfico.com/Products/FICO-Score-3-Report-View/

 

This way if you have some work to do on your credit you can work on it now while you are working toward your new employment status.

Also check your DTI to see what you qualify for - your gross income sounds very good, but vehicle payments and future real estate taxes and insurance and HOA fees can impact how much home you can purchase.

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