Employment Issues. In my previous posts, I wrote that to get a loan, you need a down payment, and you need verifiable income and cash reserves in addition to your down payment. The verified income part typically means having a job. But a loan application can be turned down because the time worked at a current job is less than a year – even if the salary is higher at the new job. Underwriting problems are common if you’re self-employed, as W-2 income is much easier to verify. In that case, tax returns are a must. Other hurdles are lapses in employment. Lenders want to know you can continue to make the payments, so periods of unemployment are troubling without adequate explanation.
