Realty Estate Agents: The Primary Source of Information on Home Purchase: Part II
In the previous installment we looked at how you as a Real Estate Agent can help your clients in their home buying. You are their first contact and “book of knowledge” for them in this exciting time of their lives. And they are going to ask you questions that you just might have a few answers to concerning home buying. We covered the Residential History, now let’s look at Employment/Income History.
The whole purpose of an Employment/Income History is to prove that the home buyer can make the mortgage payment. Now of course you are not a mortgage lender but these are common sense and proven answers that will help your client.
- Two year work history/if available
Your client will need at least 2 years of a work history either in the same line of work or similar work. Why? Once again common sense will tell you that the client shows consistency and reliability and interest in his or her work which will carry over to the responsibility of that mortgage payment.
Even if the home buyer’s employment is in their field of study or training, that is acceptable history. For example, they could be a chemist but be working for the auto industry. Their training and expertise is in chemistry not the auto industry. But because of his training he is needed to test different types of plastic for the interior of the auto that will meet the industries standards. - Change in two year work history
If there is a change in ones work history, this could be because of several reasons. One could be more money in a different area that they would qualify. Also if there is a layoff in the company there would need to be training for another avenue of employment.
For both of these reasons a Letter of Explanation is needed to verify and explain why the employment had a change. Just that, an explanation and why, what, where, when and how. - Alternate Sources of Income
Besides the regular source of income, there can be side sources of income. Social Security, Retirement and Pension incomes can also be verified as employment history. These incomes come either late in life or due to situations that one cannot participate in a regular 9-5 job.
And as situations and life would have it, there is also alimony and child support that will play into the employment history. Believe it or not.
Now this is a very simple explanation of what your client might need to know before stepping into a lenders office to see if they can qualify for the mortgage for that wonderful home that you are showing them.
The more information that you have for your home buyer the more confidence that they will have in their expert Real Estate Agent!!
Melissa Dougherty
Patriot Professionals
Realty Support from Showing to Closing
