Your employment history and income are very important when applying for a loan. Lenders want to see that you have sufficient stable income to pay the loan back. They usually want to be able to verify your income is actually what you say it is on your application.

The last two years of your employment history are the most important. If youhave been in the same job or the same line of work that will greatly help your cause. If you have been unemployed for any part of the last two years you will probably need to explain the reason for the gap in employment. It is best if you been in the same job for the entire two years prior to applying for a home loan. If you have changed jobs or have changed careers you have a less stable employment history and, depending on how the rest of your application looks, could cause your loan application to be denied.

Your employment also determines whether the lender can verify how much money you actually make. If you are an employee on the payroll of a company and you get a W-2 every year, you will have an easier time getting approved for a home loan than someone is self employed. Your pay stubs and your W-2s show exactly how much money you have made and how much you are currently making. Make sure you keep your pay stubs and the W-2's that you receive. These will be important records to have once you start the loan process.

Cash income is nearly impossible to track. If you get paid in cash for whatever reason it is important that you deposit all of the cash you receive into your bank account. The bank will record these deposits and your bank statements can then be used to verify your income. In this case the lender will only use the income that can be verified. If you hold back some cash from your bank account for any reason, the money held back cannot be verified or considered income for the purposes of qualifying you for a loan. Self employed borrowers would similarly use their bank statements to verify their income. Many lenders have “stated income” loans that do not require you to prove your income. In order to qualify for those loans you have to have very good credit and you will usually end up paying a higher interest rate.

The American Home Buyer Service cannot change your employment history or your income. However we help you determine how your job and employment situations must be approached in order to ensure that you will get approved for a loan. This may mean putting more time and effort into improving your credit score or addressing some of the other points discussed here more thoroughly. What we do and how we address this area is determined on a case by case basis. The American Home Buyer Service is tailored to your individual needs.

Click here for a free consultation or call CarePlus Financial at 866-554-9906.