If you have been wondering whether you can get a mortgage and buy a house without a job, know that is it possible. You just have to convince the mortgage lender of your ability to repay the loan. Use these four tips to help you in this quest:
Show Verifiable Income
The first thing you need to do is to prove that you have an income. Mortgage providers typically want proof of job because they want to prove that you will be able to service your home loan. However, you don't need a regular job to have an income, other sources of income include retirement benefits or even interest from investments. The lender will probably need to see your income records for the last couple of yours to confirm that the income isn't likely to dry up anytime soon.
Prove an Extremely Good Credit Rating
It is not just a good income that can qualify you for a mortgage; you also need a good credit history evidenced by a good credit score. If you don't have a job, however, an average credit score isn't going to cut it with the lender; you need an exceptionally high score to prove that you aren't likely to default on the loan.
Get a Cosigner
Another alternative is to get a cosigner with a good job and debt-to-income ratio. In this case, the lender will consider both of your financial statements when reviewing your mortgage application. The lender will have the authority to go after the cosigner's assets in case you default on your mortgage payments. This means only those who trust you and your ability to shoulder the mortgage payments can agree to cosign a loan for you.
Widen Your Circle of Target Lenders
Lenders are different; some will turn you down immediately they realize you don't have a regular job while others will give you a listening year. Therefore, don't restrict yourself to a few lenders or the ones you know well. Talk to as many lenders as possible to boost your chances of getting one who can give you a positive assessment.
Hopefully, your lack of a regular job will not kill your dream of owning a home. In this case, it's best to get preapproved for the mortgage to avoid disappointment after identifying the right property. Don't forget to involve a real estate agent in the home purchased project to protect your investment.