Applying for a mortgage loan and make your application is approved by a lender is a great accomplishment. Lenders consider many factors when approving applications. Unfortunately, some applicants may not receive mortgage loans because they do not meet all the requirements of the bank.
Stable employment
Buy one house requires a source of stable income. Being self-employed is not enough to qualify for a mortgage loan. Lenders take into account not only whether these employees, but also for how long has this been. Your mortgage loan application will ask about past and present employers; and as a general rule, obtain approval of these loans will require 24 months of consecutive employment. Gaps in your employment history or a history of shorter employment can prevent the approval of a loan.
Same employer
Mortgagees can review how long have you been with your current employer. The change work before applying for a mortgage loan does not necessarily affect the approval of your loan. Lenders consider your employment information in general. They checked to see if accounts with a history of continuous employment and also if you have been in the same field in the case of workplace changes.
Proof of employment
The lenders use several methods to verify your employment history. If you have been employed with a company, you need to provide copies of your most recent paycheck stubs and W-2 forms with your mortgage application. Some also require a letter proof of employment or income signed by your employer to confirm employment dates. If you are self-employed or you are operating your own business, present your tax returns for the past two years.
Reasons for the requirement of two years
Being employed continuously for at least two years is an indication of stability. If you get your first job and then apply for a mortgage loan three months later, very likely result in a rejection, because creditors cannot assess whether you will be able to maintain long-term employment.
It is important to note that although there are variations between different credit providers and even the requirement of a history of use of two years is an industry standard, some lenders may approve your application even with less history. Finding this type of lender involves talking to different banks and ask their credit requirements.