What's your advice for college graduates seeking a mortgage?

Question

Hello BP Community,

I've heard so much about the mortgage pre-approval process. One particular qualification that comes up repeatably is "two years' worth of tax returns." As a soon-to-be college graduate, I believe I and many other graduates alike would have difficulty fulfilling this qualification, as some of us may be getting our first jobs right out of college.

To all of you, I ask: What advice would you give a college graduate that could help them secure a mortgage?

Bruce Woodruff · Answer

There are ways around this, but the rules of the game are the rules. And they make sense if you think about it from their point of view....You might get a loan with a new job and that W2, but in my experience it's not that easy. You could get fired or laid off next week and then couldn't pay them back.

Getting a partner or co-signer is a more likely route. Or wait two years and accumulate knowledge during that time.

Jeff Shumway · Answer

Hey Jonathan, so long as everything is in the same field, you should be able to use your college transcripts/internships to make up the 2 year history. This works well for specialized fields, i.e. finance, engineering, math, etc. You might have a tougher time if your studies were in something totally different than your job (i.e. art major to data analytics job).

Javier Mercado · Answer

Hi @Jonathan Feliciano

@Bob Okenwa is correct. You can use education to explain lack of work history as long as you have been receiving paychecks from your employer and it is relatable to the degree you’ve received. As a lender in Florida I’ve assisted clients in similar situations.

Best of luck

Bob Okenwa · Answer

Talk to a knowledgeable loan officer. As a recent graduate, one may be able to qualify for a mortgage after getting a new job, showing pay stubs, and using their college transcripts.

Theresa Harris · Answer

One option is to have someone co-sign a loan.  You are going to need money for a down payment, closing costs, inspection, etc.

What's your advice for college graduates seeking a mortgage?

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