2019 Idaho Real Estate Blog

How your job affects getting a mortgage Main Idaho Real Estate Insights

Applying for a mortgage is not an easy task. Your Lender will need to look at your income and decide if you qualify for a loan and how much!

Home Loan Professionals will go to great lengths to verify you have met all the criteria set forth by Fannie Mae and Freddie Mac to get your loan. This is why underwriting is necessary, and documenting everything is paramount so make sure you answer all questions.

So mortgage underwriters (the decision-makers on approvals) thoroughly review each mortgage application, questioning “Is this loan scenario plausible?” Mortgage underwriters are incredibly sharp. They are specifically trained to mitigate risk for a mortgage company by documenting, questioning, and leaving no stone unturned. And the proximity of your job from your prospective new home is something they will scrutinize.

How can a long commute can affect your mortgage?

If you work 100 miles away from the home you want to purchase, it may be difficult for an underwriter to believe that this circumstance will not cause duress for you. Between the time, gas expense and additional wear on your car, it may create an unintended burden.  

Maybe though, you would  have the ability to telecommute and only need to drive a few days per week and work from home on the other days. A letter from your human resources department could explain the nature of your occupation, how important traveling is to your job, and what percentage of your job requires traveling. This is the type of documentation underwriters need to see. When your job proximity is not explained on your loan application, an underwriter may not understand the entire situation and have to make assumptions that could  result in higher interest rates, fees, and a subsequently higher monthly payment.

An hour commute to where you work is acceptable. Anything beyond an hour commute will open up questions, prompting the need for detailed explanations and more paperwork.

Your credit score is also a big factor in how much your mortgage can cost you, so check your credit far in advance of shopping for a home to determine whether you need to take some time to build your credit. Be proactive!

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Posted by tlangford at 4/24/2019 11:45:00 PM
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Michelle Penick, Build Idaho Client Real Estate Services

Michelle Penick

Client Care Team
208.629.0217 | [email protected]

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