Another home-buying question... in a slightly abnormal situation.

[tink2020]

I searched first and read through the threads started with home-buying questions and didn't see anything to this effect, as we're in a slightly abnormal situation (although not totally unheard of )

DH and I are looking to buy our first home. When plugging in our numbers to calculators and communicating very generally with home builders and/or lenders, we are planning on being able to qualify for the amount we are looking to borrow.

The problem is this -- both he and I are graduating in May and beginning work starting July 1st. He will be beginning a medical residency program with a very detailed, drawn out, 4+ year contract. I will have on paper a job offer and agreement, as well as contract and salary info. We will also have a downpayment available.

However.... we want to move a month or so before that. Is this even an option? Everything we read lists that we will need paystubs, which we won't have until mid-July. If necessary, can we just show that we have enough cash on hand to pay the mortgage for the months leading up to this date? Does that even hold any weight?

DH is certain it's done all over, since lots of residents have to move to a new city before they begin (obviously). Many of them are single, or are married to others beginning residency at the same time -- so they would also have no income to speak of until a given date. I guess that is true, and so certainly there is something in place for these situations

We plan on asking the financial counselor at DH's med school as well as likely the developer we plan on buying from...... I'm just really impatient and wanted to see if anyone had any thoughts until we can hear from them

Thanks in advance!

 

[FreshTressa]

Talk to a mortgage broker.

It doesn't cost anything or obligate you to anything and I'm sure they will have the answers.

 

[ducklite]

You'll be fine!

FNMA and FHLMC both want to see either two year emplyment history in the same general field, OR formal education leading up to a job. As long as you've both got contracts, it won't be a problem.

They'll want to see copies of the following:

degree or transcript to show you were in school
contract of employment with specific start date and salary info

They will want to see that you've got sufficient cash to pay your bills for that two month bridge in addition to three months PITI reserves.

If you close in June, as long as it's not in the first couple days of the month, you won't make a mortgage payment until August 1st.

Anne

 

[tink2020]

You'll be fine!

FNMA and FHLMC both want to see either two year emplyment history in the same general field, OR formal education leading up to a job. As long as you've both got contracts, it won't be a problem.

They'll want to see copies of the following:

degree or transcript to show you were in school
contract of employment with specific start date and salary info

They will want to see that you've got sufficient cash to pay your bills for that two month bridge in addition to three months PITI reserves.

If you close in June, as long as it's not in the first couple days of the month, you won't make a mortgage payment until August 1st.

Anne

Thanks! You mentioned the first couple of days of the month, and I've heard that as well. So I'm assuming that since the mortgage will be paid on the first of the month, if you close after that (say mid-month) you wouldn't pay until the next month? But actually you mentioned closing in June and paying August 1st, why not July?

Thanks again, and sorry if these questions are goofy. We're obviously newbies, at ANY big purchase really. I bought a car in the beginning of college but was SO clueless then that I didn't check my credit report, had a HUGE error (apparently not paying bills when I was 3 years old ) and really paid for it. Literally.

Add that to the fact that my husband is VERY excited about buying a house, but VERY slow to make big decisions..... and I think we're going to be freaking ourselves out unnecessarily!

 

[ducklite]

If you close on June 10th, you'll pay the interest due on the loan through the month of June, so 20 days worth, at closing.

You wo'nt make a payment in July.

On August 1st, you'll make your first payment. This will include the principal for August, and the interest that has accrued from July 1 until August 1. Moving forward, every payment you make will be the principal for the month you're making it in, and the interest for the time from the previous payment until the current payment.

If you close in the first couple days of June, you'll pay little to no interest at closing, but your first payment will be July 1st, and at that time you'll pay the interest accrued during June and your July principal payment.

Bottom line, you can bring more cash to closing to have a longer period of time before you first payment is due, or bring very little to closing and have the first payment due much earlier.

It sounds like in your case having a mid-month closing is the way to go.

Anne

 

[Aimeedyan]

We bought without starting our new jobs because we relocated. We both had job offer letters to present that had our salary information in it. We closed the end of Oct and I didn't start until Nov 20th - I was also a student at the time. DH was working but changing jobs Dec 1st. We were approved without a problem and just had to present our new paystubs a month after we started our new jobs, I guess for their files.

Our first payment was due Dec 1st though we closed Oct 20th, or something like that.

 

[icebrat001]

check out studentdoctor dot net lots of med students and residents talk about purchasing a home that are in your exact situation. It's toward the bottom of the page.

 

[tink2020]

Thank you all for your help! I shared this info with DH, he gave me the "i told you so" bit, and we're both ecstatic! I really appreciate all of your info.