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Unformatted text preview: rove the applicant's and co–applicant's careers. Stability – A second factor that is used to establish the ability of the borrower to repay a mortgage is employment stability–not only the stability of employment in the past, but the potential for future employment. When qualifying your buyer as to the stability of income, you should establish how long the prospective buyer has been employed in his or her present line of work and how long your buyer has been at his or her present job. Most conventional lenders have established a minimum of two years in the buyer's present line of work, with no minimum time on the present job. It should be noted that the important factor is the time in the present line of work. For example, let us say that a prospective buyer has for the past several years been a lumber salesperson to the construction industry in Northern California and due to the slowdown in construction in that area decided to move to Los Angeles to seek better opportunities. In Los Angeles, the prospective buyer was not able to get a job selling lumber to the construction industry, but was able to get a job selling appliances in a retail store. According to most lenders, the prospective buyer has not changed his or her line of work–sales. 2. Type of Job – In addition to the length of employment, the type of job or profession is important. For example, a person who is highly skilled and with good qualifications, such as an MBA graduate from UC–Berkeley will always be in demand and will have little worry in finding employment. Today, with advances in computer technology and the ever–expanding use of computers in industry, a person trained in computer science also will not have a problem finding employment. Other people thought to have stable employment are government employees, engineers, and other skilled people employed by large corporations. 2 13-12 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 13: QUALIFYING THE BORROWER
Examples of non–stable jobs include carpenter...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10