College Graduates as First Time Home Buyers
College graduation is right around the corner and many June college graduates already had job offers in hand and are ready to start their new careers. Most college graduates are planning on purchasing a new car and are thinking of getting a place of their own once they save some money so they can furnish it. Many college graduates wonder if they qualify to buy their own home instead of renting. Many college graduates believe that they need at least two years of income in order to qualify for a home mortgage loan. Mortgage lenders do want to see a minimum of 2 years work experience but there are exceptions for recent college graduates who land a secure job.
Transcripts can be used in lieu of 2 year employment history for college graduates
College graduates can qualify for a mortgage loan even if they do not have a two year work history. If a recent college graduate lands a job in his or her field of study, the college years count as employment history. For example, if a college student has majored in Electrical Engineering and he gets a job offer at Motorola as an electrical engineer, the college graduate would qualify for a mortgage even with a short job longevity. Mortgage lenders count the college graduate’s major as part of employment history even though he was not making any income.
Qualifying for home loan for college graduates
For those college graduates who have majored in other disciplines besides the field they are in, it is on a case by case basis. For example, if a recent law school graduate just got hired as a police officer, the mortgage underwriter will consider the mortgage loan applicant’s years in law school in considering whether to count it as employment history. Even though law enforcement is in the general same field as law, a police officer’s job only requires a high school diploma and not a law degree so the applicant is not required to have a law degree. Taking into account that a job as an attorney and a job as a police officer are in the same field, the chances are favorable that the underwriter will approve the police officer’s law school education toward his employment history.