My Husband and I have been looking to purchase our first investment property. My husband has been at his current job for 7 years and it is a 70/30 split Salary/commission. He was offered a position at a new company with a salary higher than his current total expected earnings and is planning on taking it. After starting a new position how long should we wait before applying for a loan? Just looking for typical work history requirements. His income will be guaranteed now. Would 30 days with a letter from his new employer confirming his salary be sufficient? What is the typical timeline? Any help is appreciated. Thanks!
The reason you would go to a Conventional loan versus a Non-QM loan that was brought up by @Arsen Atanasovski is that rates are better on a conventional loans. So the 1st loan you would want to look at is a Fannie Mae or Freddie Mac. type loan. However there can be higher LTV or Loan to Value on some Non-QM loans. The rates are close to what a Conventional loan rate would be, but the reserve requirements can be higher than what Conventional loans would call for.
Investment properties / loans do not look at employment they usually look at experience and your skin in the game. If you end up with a lender seeking income from W2 income then that would be a primary red loan. If you purchasing an investment property with the intention to profit monthly afterwards then there is no income review. I might be wrong because this is your first property but I know I have lenders that do not look at that at all.
Hey Karene, is the new job in the same field/line of work? If so, he can apply for a mortgage immediately. During the mortgage process, lenders request a verification of income/employment from his employer and they will notate exactly how much he is making. Lenders will also request a similar document from his previous employer. This all pertains to a conventional loan- if you are using a conventional loan you are most likely using his income to qualify for the property so the verification is required. There are other loan types out there that do not rely on your personal income at all so the verifications will not be required.
The reason you would go to a Conventional loan versus a Non-QM loan that was brought up by @Arsen Atanasovski is that rates are better on a conventional loans. So the 1st loan you would want to look at is a Fannie Mae or Freddie Mac. type loan. However there can be higher LTV or Loan to Value on some Non-QM loans. The rates are close to what a Conventional loan rate would be, but the reserve requirements can be higher than what Conventional loans would call for.