When you’re buying a house with a mortgage, you need to prove that you’re financially able to make the minimum monthly payments on the loan. In most instances, this means prospective borrowers have to provide proof of income and detailed bank statements to all home loan lenders. These statements help them review your application and make a decision quickly.
But what happens if you’ve recently accepted a new job but haven’t started working yet when you’re applying for a loan? You may be able to use your job offer letter to qualify.
Be Honest on Your Application
The most important thing to remember when you’re between jobs is to be honest on your application. Let the different home loan lenders you’re considering working with know that you’re applying with a job offer letter. This way, they’ll be able to ask you for the right types of documentation from the beginning and you’ll be able to avoid any snags in the application process.
Make Sure the Letter Meets the Requirements
The offer letter you’re submitting will be the substitute for paystubs and other proof of income. This means the letter needs to meet certain requirements for home loan lenders to take it seriously and make a decision.
At a minimum, the letter should show a clear, non-contingent job offer. It needs to outline your salary and start date for the new position. That start date should be within 90 days of the closing date on the loan for you to qualify. If you’re applying earlier, you may need to wait to look for a loan.
Review Your Loan Options
The only difference between the standard mortgage application process and using a job offer letter to qualify is the way in which lenders validate your income and earning potential. This means you’re still able to apply for different types of loans based on your needs and your qualifications.
For example, if you’re a qualified current or former military member, you can apply for a VA loan. If you’re buying your first house in a rural area where your new company is expanding into, you can apply for an FHA or USDA loan.
Get the Help You Need
There are so many different home loan lenders out there that navigating the application process can be tough. You don’t have to go through it alone. Contact our team and let our mortgage experts help you find the right loan for your new home quickly.