Adelaide is pregnant and on maternity leave.Â Itâ€™s important to her that she brings her baby home to their house, not an apartment.Â Is she out of luck?
Her husband Monte shares her dream.Â He also knows that in this economy money is tight.Â Since they canâ€™t buy a home on just his income and Adelaide is currently not working, heâ€™s scared that a mortgage will never be approved.Â Is he right?
Mortgage approval will not be withheld simply because of Adelaideâ€™s maternity leave.
Mortgage approval is not automatic either.
Steps will need to be taken to convince underwriter that loan will be paid back.Â This will require additional documentation.Â Stands to reason really.Â How will underwriter proceed?Â Sheâ€™ll ask:
1.Â Does Adelaide intend to go back to work?
2.Â Will she return to her current employer?
3.Â Will she return BEFORE first mortgage payment is due?
Of course the underwriter will be looking for yes answers. Â Not returning to work prior to first mortgage payment will require documentation on how you will make your payments.Â Temporary income and cash reserves most common methods.
In todayâ€™s economic climate, a good credit score gets you in the game.Â Documentation is the game.Â Be prepared to prove everything.Â This brings us to the next steps:
1.Â Does Adelaide have a legal right to return to work, or is her employer willing to document their commitment to allow her to return to work?
2.Â Documentation of confirmed date Adelaide will return to work.
3.Â Documentation of Adelaideâ€™s income when she returns to work.
All other underwriting guidelines still apply.
Knowing they had a fighting chance, Monte and Adelaide came in for a Pre-Approval Letter and started looking for their new home.
P. S.Â Itâ€™s going to be a boy.
Manager & Award-Winning Loan Officer
Originally published: http://raleighmortgagegals.com
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