Long Beach California Real Estate Loans

Long Beach, Ca.   Many home buyers are concerned about how long they have to be on their job before they purchase a home.  Generally speaking, it is required that you work for at least two years in the save line of work.  That does not mean, two years at the same job, just two years in the same line of work.

Of course, every rule has exceptions.  For example, if you just finished technical school or graduated with a professional degree, the time that you invested in your career counts as job time.  

For example, if you were to graduate from the Police Academy, all the months that you spent becoming a cop would apply toward your two year work history.  Likewise, if you graduated from College with a professional degree like law, architecture, dentistry or accounting you would also normally qualify to purchase a property assuming that you have immediately been hired after graduation.

If you are on a salary, the actual gross salary per year that you are making will be utilized to caluculate your qualifications.  However; if you are on an hourly wage, the average of the last two years will be used to calculate your earnings.  For example, if you made $40,000.00 in hourly and bonus income in 2007 and $45,000 in 2008, the banks would only give you credit fro $42,500.00(a running two year average). 

One big mistake that some loan officers are making in that they are also applying the same two year average even when hourly employees are making less in the last year then the year before.  In these difficult economic times, when employers cut hours the bank's underwriters will only use the latest years earnings.  So, if in 2007 you made $45,000.00 working in an hourly job and $40,000.00 in 2008, the banks will only give you credit for $40,000.00 of annualized income. 

 Kirk Mulhearn, a mortgage planner and real estate broker can be reached at: 

• 866-961-8042 ext. 110

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