Many lenders look for at least a 2-year history of employment with the same company, or at least two years in the same field of work.
A stable employment history can be a large determining factor for your loan. In addition to job history, lenders want to be able to verify your income. Income is verified by providing W-2 statements and/or tax returns for the past 2 years.
The amount of your mortgage payments and total debt payments as compared to your income, “debt-to-income ratios”, not only impact your ability to secure a loan, but can also impact your loan cost. The higher your debt-to-income ratio, the higher the lenders risk, therefore the higher the interest rate and fees will be.
If you are thinking about taking out a mortgage loan, you may want to wait until you have two years at your present employer, or wait for that upcoming raise early next year.
Do you have more questions about the mortgage refinancing loan application process? Click on a question below to get the answers you need to make informed, educated financial decisions.
- How Should I Approach the Process of Applying for a Loan to Refinance My Mortgage?
- What Documents Do I Need to Have Available to Apply for a Loan?
- What Do Mortgage Lenders Look for in Loan Applicants?
- What Mistakes Should I Avoid in the Loan Application Process?
- Does My Credit History Effect My Ability to Get A Mortgage Loan?
- Does My Income Effect My Ability to Get A Mortgage Loan?
- What Happens After I Submit My Application?
- How Should I Approach Making a Down Payment and the LTV Ratio?
- Why Is Locking In My Interest Rate So Important?
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.