How long after finding a new job in the same field with a 3 week gap do we need to wait to apply for a mortgage?

Asked by Quancaylacorey, Cartersville, GA Fri Aug 23, 2013

Prior military. I have COE
Layoff July 26, 2013
New job started August 21, 2013
Repaired credit to have middle score go from 525 to 695.
Still have 2 charge offs that due to fall of April 2014 and August 2014. One is for $1100 and one is for $1400.
Wife will not go on the loan but income comes in monthly for ssdi(my kids), can I use this income as well. Looking in the Gwinnett County, Rockdale County and Newton County areas of GA. Any lenders willing to help, please reply

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Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Fri Aug 23, 2013
All loan programs today require a verified continuous 24 month employment history in the same line of work, but not necessarily with the same employer. There are only a very few of exceptions to that rule. Those exceptions are as follows:

1. If you are a recent college graduate, you can use your time spent in college to make up part up the 24 month history. A copy of your college transcripts and your college diploma will be required.
2. If, within the last 24 months, you have had a 6+ month gap in employment, then you must be employed at least 6 months since that gap ended.
3. For someone with a longer break in history, the same 6 month rule is followed, but a full 24 month employment history from previous employers must be verified.

For someone who is salaried or hourly, you generally must be employed at least 30 days with the current or new employer. This is due to the fact that a pay stub reflecting at least 30 days of YTD income is going to be required prior to closing.

If you are paid by anything other than a W-2 (i.e. a 1099, self-employed, etc), then you must have 24 months of receipt of that type of income. Some exceptions are possible if your current employer switched your compensation from W-2 to 1099 or commission.

You mentioned credit repiar, so It is very important that you be VERY careful in disputing accounts. You cannot dispute accounts which you know to be accurate. For a mortgage, you cannot have an active and open account that has a disputed status. Fannie Mae/Freddie Mac/HUD all have very specific guidelines to be following when a borrower has an account in a disputed status. In some cases, it could cause you not to be able to qualify.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote
Carla Pennin…, Agent, Georgetown, TX
Fri Aug 23, 2013
Congrats on all your hard work on repairing your credit! Talk to a lender - you should be able to move forward! You can ask a local Realtor for a referral to local lenders. I'd recommend a local mortgage broker over the "big box" bank lenders. They are generally more accessible.
1 vote
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Fri Aug 23, 2013
The gap between both jobs isn't an issue, as long as you have a 2 year employment history all together. You do not need to be at your new job for a certain period of time, you just need your 1st paystub.

As far as credit and everything else, it's basically impossible to know. I do know both charge-off or collections would not be a deal breaker. It's important for a Loan Officer to have an opportunity to review all the necessary documentation, only then can we tell you if you'll approve or not.

I can tell you exactly what documents you need so we could pre-approve you. If for whatever reason you do not pre-approve, I can then tell you what you need to do to help your situation and get to the point where you approve.

Feel free to call or email me anytime. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
1 vote
Ava Anderson, Agent, Snellville, GA
Fri Aug 23, 2013

Congratulations on all your hardwork to improve your credit score. Based on the information you shared it sounds like you should be able to proceed with applying for your loan. If you need assistance with finding a home I will be happy to assist you and I can also provide you with names of trusted loan officers I use. Please give me a call or send me an email and I will be happy to provide the info to you.

Ava Anderson
Solid Source Realty Inc
Associate Broker
770 369-5121
0 votes
Tiffany Hank…, Agent, Lawrenceville, GA
Fri Aug 23, 2013
It sounds like you're ready to move forward in the loan process. If you need any lenders or looking for an agent, please feel free to give me a call. I can assist you with any real estate needs you may have.

Tiffany Hankerson
Associate Broker
Drake Realty
404-433-4184 Direct
770-565-2044 Office
866-260-7180 Fax
0 votes
Darryl Shurg…, Agent, Ronkonkoma, NY
Fri Aug 23, 2013
Oh, one more that bottom line to your mortgage person before you pay off anything. it could impact your credit score to pay off an old collection. new recent activity would bring an old account back on the radar screen for scoring model on score generation. definitely don't do anything until you get solid guidance from a mortgage professional.
0 votes
Darryl Shurg…, Agent, Ronkonkoma, NY
Fri Aug 23, 2013
You shouldn't have to wait at all. 3 weeks isn't really a gap. Congrats on your new job!
Your lender will want 30 days worth of paystubs from your new job prior to closing, which is about the shortest amount of time it would take to close (most likely longer) anyway. As long as your previous employment was for more than 2 years with no gaps you should be just fine. Some lenders will chime in soon to validate this. They might say you need at least one paystub to proceed....true, fair enough. but you probably have some sort of offer letter signed by HR stating your income, which will be documented during the process. I'd see no reason to delay if you have an accepted offer on a house.

btw, nicely done on getting the mid score up 170 points!!!!! pats on the back for you, that wasn't easy I'm sure.

'still have 2 charge offs due to fall off....." that could be a problem depending on the loan program you choose to go with.

Last I looked into it, this was the consensus for mortgage lending:

"If the total outstanding balance of all collection accounts is equal to or greater than $1000 the borrower must resolve the accounts (e.g. enter into payment arrangements with minimum three months verified payments) or paid off in full at time of or prior to closing.

If the total outstanding balance is less than $1000, the borrower is not required to pay off the collection accounts as condition of the mortgage approval.

NOTE: If you're paying off collections, please consult with your mortgage originator before you do and remember to always obtain documentation to show your account is satisfied and paid in full."
0 votes
Also, would I be able to settle the debts prior to closing or will I have to pay it in full? Also, I used Lexington Law to help with credit repair, how do I get the "disputed" comments removed? I was told those would have to be removed prior to closing(on the 2 accounts) I spoke about. Do you have a private email?
Flag Fri Aug 23, 2013
Tim Brown, Mortgage Broker Or Lender, Alpharetta, GA
Fri Aug 23, 2013

You can apply for a mortgage immediately, but will likely need 30 days of pay documentation (2 paystubs) before you can close on the loan. This assumes the new position is in the same field as the previous one that ended in July.

I do not anticipate financing your home purchase being a problem. Call me and we can discuss in detail. 678 467-9959.

Best regards,

Timothy Brown | LPO Manager
EVOLVE bank & trust
11605 Haynes Bridge Road Suite 125
Alpharetta, GA 30009
o. 770.255.3880 | f. 678.935.1156 | m. 678.467.9959
NMLS #:168281
0 votes
Can I email you?
Flag Fri Aug 23, 2013
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