settle into one field for a while as lenders look to your last two years of employment to verify income and establish how consistent you are with work.
If you just started your business and it isn’t making enough money just yet, make sure to have some consistent supplemental income to back it up. If you’ve been in one career field for less than two years, make sure to stick it out until after you’ve been approved for the loan with key in hand. If they see any inconsistency this can be grounds for denial.
Be Prepared To Pay A Required Mortgage Insurance Premium
Mortgage protection insurance, or MPI (sometimes called mortgage payment protection insurance), is simply a form of life insurance. The cost depends on factors such as the amount of your mortgage, your age, and your health.
This will come in handy if at some point you can’t pay your mortgage due to a disability, job loss or death. Most never really consider this additional cost that will be tacked on to your monthly mortgage payments. But be aware, they don’t come cheap assuming a 1% MPI on a $200,000 loan with only 5% down payment (a $195,000 loan value) results in $1,950 per year or $162.50 in monthly payments.
Your Down Payment & Closing Costs Will Be Out-of-Pocket
Here are the facts, no one has ever walked away from buying a home with putting $0 down. Contrary to fake ads and promotions, your down payment and closing costs will be out-of-pocket. A down payment is