Todd Alperin - Coco, Early & Associates The Olivares, Molina & Alperin Division



Posted by Todd Alperin on 10/18/2020

There are so many factors that go into buying a home. How much money do you have saved up? What is your debt amount? Hw much money do you make each month? Can you afford the neighborhood that youíd like to live in? All of these questions are swirling around the minds of all first-time homebuyers. Did you know that how long you have been at a job is just as important as your income as a factor in getting approved for a mortgage? 


Your ability to repay is why the lender is looking at so many different numbers and factors about your financial situation. Employment overall plays a large stake in the mortgage application. Lenders will look at your past employment history along with the job that your currently have. They are also concerned with your future employment status. Your lender will get an idea of your overall plan for your career and employment through looking at your history. 


As a first-time homebuyer, you most likely donít have the employment history of more seasoned homebuyers. Generally, most people who are buying a home for the first time are pretty young in their careers. As a rule of thumb, lenders will look at your employment history over the past two years. The lender wants to see your industry focus. Maybe you have stuck with one career direction, or maybe you have hopped around a bunch. As a hint, jumping around from job to job and field to field doesnít look very good to mortgage lenders. Job floaters tend to appear as if they have no plans for the future. 


Good Career Moves


Staying a software engineer, but moving from the medical industry to the financial industry is an acceptable and smart move in the eyes of lenders. Yet, leaving your stable job in accounting to pursue a career in acting would not be looked upon favorably in the eyes of a mortgage lender.


It doesnít matter how much money you have saved up, often, without employment history, a lender may not consider you as a dependable buyer. Your lender wants to see that your income is stable for a period of at least three yearís time.


Income Matters 


You wonít have the same work history as a first time homebuyer as you would if you were a bit more seasoned. When lenders look at your income history, not having a lot of work history can be a detriment to many factors. If your income is an annual salary, for example, your lender will divide that salary by 12 in order to get a monthly income. If you havenít been at the job for a full year or took a pay cut during times of training, those numbers will be affected.


For hourly employees, overtime may be a problem as it may not be factored in with the equation if there isnít a history of at least two years on the job. 


While it isnít impossible to buy a home with a short employment history, itís advisable to wait until you have some significant time under your belt before you dive into the home buying process.




Tags: self employed   finances  
Categories: Uncategorized  


Posted by Todd Alperin on 8/27/2017

Buying a home is one of the biggest purchases that youíll ever make in your lifetime. Youíll spend decades of your life making mortgage payments to pay off your home loan. Buying a home is more than just simply finding a place to live. Itís also a financial decision. Your home helps you to build equity, gives you tax deductions, and helps you to have some security in your financial future. 


One of the biggest questions that youíll have when you buy a home is ďHow much can I spend?Ē To answer this question, youíll need to dig a little deeper. 


Do You Have Money For A Down Payment?


The standard amount of money that youíll need for a down payment is 20 percent of the purchase price of a home. If you donít have the money for a full down payment, youíll need to pay for private mortgage insurance (PMI). This could add up to be an extra cost of hundreds of dollars per month in additional insurance payments on top of your mortgage and every other kind of expense that goes along with buying a home. Youíll need to take the time to save up for a down payment if youíre a first time homebuyer. If you already own a home, the equity that you have in that home can help you with the down payment.


What Are Your Other Financial Responsibilities?


Thereís more to buying a home than just the monthly mortgage payment. Youíll need to get insurance, pay taxes, and have some money set aside for repair and decorating costs. Youíll need to look at your monthly income to find out just how much you can afford on a home. You should take an honest look at your lifestyle and existing expenses in order to determine a comfortable monthly mortgage payment for you.    


Know Your Credit Score


Your credit score will be a major factor in how much house youíll be able to afford. Your lender will use your credit score and credit history to help determine what type of interest rate youíll get and how much theyíre willing to lend you in order to buy a home.


Understanding what you can afford for a home purchase is crucial before you even start shopping. Itís a good idea to meet with a lender to get pre-qualified. This is different than getting pre-approved. Your lender will give you a general idea of how much you can spend on a home without digging too deep into your finances. Getting pre-qualified is a great place to start when youíre looking at the numbers of being a homeowner.




Tags: Buying a home   finances  
Categories: Uncategorized