Two of the biggest mistakes buyers make before they purchase a home/close escrow are: 

10 Reasons Why Loans Close Late OR Applicants Get Denied

1) Making a large purchase/taking on debt (usually a car) before closing escrow on their new home

2) More importantly, is making a job change!

Using Loan Officers to Screen Buyers & Close Deals

If your client is dependent upon bonus, overtime, or commission income to qualify for a home loan, they must have a 2-year history at the same company to get credit for those income streams(s).

For example, A RN works ten years at Kaiser, and in addition to their base salary, they receive a “shift bonus” and overtime”; we can use all of these income streams.

However, if the RN changes jobs and is on the NEW job for LESS than two years, the underwriter will only use the base salary of the RN; because there’s not a 24-month history of the money on the new job.

Why Pre-Approval Letters are Worthless!

If the RN’s base salary is all that’s needed to qualify for the mortgage, then no worries, “pass go” and pick up your commission check.

It’s patently unfair, but the rules are the rules after the Great Recession from 2007-2012.

“DU” Loan Approvals – Never Lose a Buyer Again

The moral to this story: Consult with your MLO before taking on new debt or changing jobs before buying a home.

Daniel Dobbs (.org)
Managing Broker

Mutual Home Mortgage

500 S. Kraemer #165
Brea, Ca. 92821
Cell: 949 250-3981

Dandobbs6@gmail.com
DRE # 00986886 …..NMLS# 307631