How To Find A Mortgage Brocker In LasVegas?
Q: I am employed as a W2 contractor. My income numbers look good but I have no stable job, and I assume that prospective lenders would take this into consideration. I don't have a clue how big a mortgage I can get, and that makes house shopping difficult. I have heard one can get a pre-approved mortgage. Assuming this is true, how does one go about getting one? Given my situation, would you recommend contacting local banks first, or going through a mortgage broker? I'm living in LasVegas? How to find a mortgage Brocker in LasVegas?
A: - The lender looks at your income and credit history as well as at your current employment situation. If you've been steadily employed -- they will check a few years' 1040s whether you're an IBM vice president or a 1099 contractor -- and have had a constant income in reasonable proportion to your credit obligations, you'll probably be approved. They look for steady and increasing income, and continuous employment. They don't care where or how many jobs you've had. HOW MUCH you'll be approved for is another issue. If your current debt load and the planned house payment total less than 38% of your GROSS income, and you have decent credit, and you have a 5% downpayment available, you're a safe bet and the mortgage brokers will probably fight for your business. The lower the debt load and the higher the downpayment, the safer a bet you are. (Brokers don't tell you this, but they will accept lenders at up to 46%.) Go with the 38% figure, and start shopping your lenders. If you are looking at a new home, ask the builder if he has a deal with a broker. (Anybody who can't quote rates and ballpark payments on loan amounts without making you file an application probably does not deserve your business.) And once you start shopping for a loan, conventional wisdom says that you really need NOT to get new credit cards, a new car, or a new job. It's not that you won't get approved, it's that it makes getting accurate, up-to-date credit information too difficult, and some lenders may not want to deal with the changes. I got my loan when I was a W-2 contractor...between when we first decided to get the home and 2 weeks after we moved in (slightly more than six months last year), I had had three different W-2 jobs. So be assured that a "steady job" is less a consideration in getting financing than a solid history in being able to make a steady income. I had a friend who has done nothing but 1099 freelance for the last few years, is a single mom, with tarnished credit, who decided to buy a house. It happened that she had a 25% downpayment and chose an older home in a nicer neighborhood. She closed the loan via telephone and Fedex from 12 states away -- but