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Restaurant Sever/Promotion/Mortgage


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Hi Guys, mortgage newb here. It's been quite some time since I posted here. Been a member for 8 years and this forum was the reason I was able to turn my credit around for the better, so I am back as a new chapter in my life is about to begin. (I don't know why this is big & bold, sorry...lol)

I'm about to start looking for a home to buy. I've been a Server for over 25 years and have worked in the same restaurant for the past 10+ years. From my understanding, if I apply for a mortgage, my income will be calculated using my past two years tax returns and then average from that. However, I have been offered a management position (promotion within current establishment), and am considering accepting. This would be a salaried position as opposed to my server (hourly + tips) and higher income.

My question is: If I accept the promotion to a salaried manager position, at a higher pay, will this be considered when I shop for a loan? Or do I need to be in that position for a certain amount of time for it to have any effect on the amount I will qualify to borrow. Is there any problems with accepting a new position within the same company right before I start shopping for a home? Any info is appreciated to help me out during this process.

 

Also, based upon Fico scores pulled from my Discover Card (TU), Penfed (Equifax) and Amex(Experian), I currently sit at 820 839 820. I have no loans and am completely debt free with a very small balance purposely reporting to CB's every month ( approx $8) to maintain scores. What kind of mortgage rates should I expect and discounts if applicable?

 

Thank you :)

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Sounds like you've been doing things right.  :)  

 

I would never, ever, ever borrow the max someone would lend to me to buy a house, and we've never regretted buying less house than a ratio said we could "afford."   Can you comfortably afford a suitable home on your old income (what if you hate the new job?)

 

Are you putting at least 20% down?  Have you considered how long you want to work (25 years of experience means you're probably age 40+).  Do you want to still be making mortgage payments when you're 73 years old?).  

 

You might want to look at 15- or 20-year mortgages instead of a 30, which is inevitably where many will try to steer you.

 

Do you have plenty of retirement savings?

 

Most of the advice you'll get from mortgage pros is how to max the amount you can borrow, which for many people isn't very good advice when you look at the big picture (do you want to eat lobster or Meow Mix for dinner when you retire?).

Edited by cv91915
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14 minutes ago, cv91915 said:

Sounds like you've been doing things right.  :)  

 

 

I would never, ever, ever borrow the max someone would loan me toward a house, and we've never regretted buying less house than a ratio said we could "afford."   Can you comfortably afford a suitable home on your old salary (what if you hate the new job?)

 

Are you putting at least 20% down?  Have you considered how long you want to work (25 years of experience means you're probably age 40+).  Do you want to still be making mortgage payments when you're 73 years old?).  

 

You might want to look at 15- or 20-year mortgages instead of a 30, which is inevitably where many will try to steer you.

 

Do you have plenty of retirement savings?

 

Most of the advice you'll get from mortgage pros is how to max the amount you can borrow, which for many people isn't very good advice when you look at the big picture (do you want to eat lobster or Meow Mix for dinner when you retire?).

I've been there for 10 years, so yes, pretty comfortable with the fact that I won't hate the job. You could really say that about any new position, but given my history with them, that's not an issue.

 

I never said I would want to borrow the max.

 

Of course I have considered how long I want to work, and how long the mortgage would be for.  However, even without maxing out, the added income puts me in a position to bump up from Chocolate Goodness to not so Chocolate Goodness. It's a line that would be easier to cross without paying much more and I would prefer not so Chocolate Goodness

 

Yes, 20% down.

 

 

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I didn't mean to imply that you hadn't thought about some of these things, it was just impossible to know for sure without asking.

 

If you want to get an idea of the rates and terms you can get, go to Zillow Mortgage Rates and get some custom quotes.  They're instant, and you don't have to provide your contact information in exchange for the quotes.  

 

We've selected mortgage originators from Zillow 3 of the last 4 times we've done mortgages (we also shopped elsewhere but couldn't beat the Zillow offers 3 out of 4 times), and we've had 100% positive experiences with the companies we chose.  

 

The terms from Zillow's quotes can be just a tad optimistic (say 1/8%), since to ensure apples-to-apples comparisons Zillow assumes 30-day locks for all of the quotes.  30 days may not be realistic to close, and in a rising-rate environment a longer lock is likely going to be slightly more expensive.  Zillow will get you right in the ballpark, though.

 

Changing jobs due to a promotion isn't going to be an issue.  A mortgage pro can tell you if you can use your new income or if they'll have to use historical income for qualification.

Edited by cv91915
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