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Qualifying for a Mortgage As a B-School Student

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pelihu
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[#permalink] New post   05 Apr 2007, 16:19
One thing I didn't really consider was the quality of accommodations available for buy v. rent. If you have a family or are hauling around some dead weight :lol: then a house would be nice.

I also had incorrect transaction costs while I was thinking about it. Brokers fees will be about $20k (friend of the family discount) for me to sell my house here, but the fees would only be a few thousand dollars for places near Durham or Charlottesville.

There would be almost no way to recover the $30-40k in brokers fees I was mistakenly thinking about. I think there is zero chance I would stay on afterwards and selling seems like a big hassle to me. I understand RTP is a very nice place to live though.
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philkriger
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[#permalink] New post   06 Apr 2007, 10:50
Here are two ways to get a mortgage as a B-school student

1. Purchase the home before you quit your job. Say the property is a 2nd home or an investment property. Don't leave your job until after your loan funds. One of the last things a lender does is re-verify employment.

2. If you've already quit your job, get a NO DOC or NINA (no income no asset) loan. These loans require no income documentation or employment verification. Stated income really isn't an option because lenders still verify employment. Stating that you earn 50k a year at a job you just quit is fraud. If you still have a job or legitimate business in B-School, Stated Income would be a good option.

Option 1 will probably get you a better rate, and require less money down, but it will vary from lender to lender. If anyone has questions about mortgage stuff, feel free to send me a pm.
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bauble
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[#permalink] New post   17 Apr 2007, 21:39
Phil, I sent you a PM
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GMATT73
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[#permalink] New post   19 Apr 2007, 07:32
Don't forget about closing costs on the mortgage. I recently spoke with a few loan officers and they were estimating between 4~6K to close a 300K home loan.
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died4me
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[#permalink] New post   19 Apr 2007, 10:52
what I really hope is that my future employer will pay for all the costs (closing cost, commissions) yeah! dream on!! :lol:
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riverripper
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[#permalink] New post   19 Apr 2007, 15:23
died4me wrote:
what I really hope is that my future employer will pay for all the costs (closing cost, commissions) yeah! dream on!! :lol:


Depending on what you do after graduation and who you go to work for that could happen. A friend of mine got 45K towards moving expenses since he had to sell his house and then bought a new one. It covered all his closing costs, the commision on selling his former home, and most of the expense with shipping all his furniture and belongings.
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