How does the employment gap lessen the chance of getting a mortgage?

Any gap in your employment history can lessen the chance of getting a mortgage. One of the important facts to keep in mind while applying for a mortgage loan is that employment plays an essential role here. If you are someone who has a lot or some employment gap, mind you your employment history is one of the most scrutinized parts of your application. But the real question is, do the mortgage lenders really need to know the reason behind the employment gap?

Research done by some of the best mortgage companies says that the mortgage specialist needs to have all the vital information. The reason behind the same are numerous. This piece will explain why employment history counts way too much.

The gap time

Professionals at Pierpoint Mortgage, a reputed mortgage company explain that most of the best mortgage lenders need at least a two-year work history. Thus, if by any chance there is a gap in your employment, it is mandatory you inform the lender about it. If things are fine and there is no gap, then there is nothing to worry about. In all this keep in mind that if your employment gap is more than six months, you need to worry a bit.

Bearable gap reasons

Needless to say, most gaps during employment are for some particular reasons. And there are times when mortgage lenders take them into consideration. Maternity leave is one of the most understood and obvious reasons where you may take leave. In addition to this, disability problems could be another reason. One thing you need to keep in mind is that every mortgage application is evaluated individually and lenders do understand the gaps that make sense and are logical.

There are some employment reasons which do not make sense to the lenders. For example, changing your job after every three months in a year, the salary is decreased, etc. These are some of the reasons due to which you may have a hard time during the procedure and the loan application may not get approved.

Talk about your employment gap

There are chances you can improve the chances of getting the mortgage. For this, you need to explain the reason behind the gap. Make sure you do not makeup stories and talk sense. A mortgage specialist is someone who has handled all the queries and if you make up stories chances are you will be caught in no time. If you have been on leave for more than six months let’s say a maternity leave. You can talk to the lender and provide all the essential documents including the hospital receipts. Next, if someone at your home is not well, do not forget to write a letter about the whole situation and explain what role did you play and how you actually took care of the sick person.

The Final Word

These are some of the facts you need to keep in mind if you are applying for a mortgage and you have an employment gap. All in all, you need to understand that the lender looks for stability. They want to see that you are someone who will be able to pay back the loan is approved.

Make sure you keep all these factors into consideration and improve the chances of getting a mortgage. There are somethings which you should not take for granted and the employment gap is no exception. Discuss it if it makes sense and get approved for the mortgage. If by chance you have a big employment gap, speak to a mortgage specialist as soon as possible. He/she will tell you what you can do.

If you have any questions regarding the employment gap, get in touch with the mortgage lenders at Pierpoint Mortgage. We have been in the business for years. No matter what the situation is we work our level best trying the problems and requirements of the customers. Tell us what you require and we will take care of the rest without creating a mess or putting you into any trouble.