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Hello. This is my first post on the forum, but I've been a lurker for a long time. I hope someone will be able to offer advice.
Background: My husband has plenty of experience in his field, but I was unemployed for many years after I graduated from college due to the poor job market. I finally found a job last year and have now been employed for about 6 months. We started learning about USDA loans, only to find out that they typically require 2 years of employment history but apparently lenders are given a little bit of flexibility with these guidelines and some are more strict than others. Green Planet Mortgage has an office here in Jacksonville, FL, but I've actually been in talks with one of their loan officers in Clearwater who said (in her words) that she's not as concerned about my short work history and the large gap because the job market hasn't been favorable to anyone lately. She also stated that "detailed, signed & dated letter(s) of explanation go a very long way in the mortgage industry plus the stability of your Husband’s career is a strong attribute to the loan." She also mentioned that she could overnight a pre-approval application package to us since we live so far away, and we could complete all of the information via mail/fax. Would that not be a wise thing to do (applying without meeting in person)? How would that impact closing, etc. and would we be better off speaking with one of their LO's up here in Jax, in hopes that they would be just as willing to work with us? I haven't come across anything negative about Green Planet Mortgage online, and they have an A- rating with the BBB.
Other than the hurdle of my short job history, everything else about us looks great on paper (excellent credit, no debt, adequate savings, both have stable careers now- him in IT/me in healthcare, etc.). We prefer a USDA loan so we can keep more of our money in savings (makes us feel better lol). We're also very cautious though and don't want to do anything that could make things worse. We could certainly wait until the end of 2012 when I finally have a solid 2 years of experience but after all these years, apartment life is wearing us down (not to mention, rent isn't cheap anymore). We're ready to buy in every way, financially and emotionally, so it would be disappointing if my short job history is the only thing holding us back.
She emailed me the following response when I inquired about pre-qualification vs. pre-approval. She said for now, it would just be a pre-qualification but I know that pre-approvals are looked upon more favorably by sellers so is this a red flag?
"Step 1: The loan process begins with signing loan documents, running credit, analyzing assets, income and property documentation. Step 2: I will send in our processed loan file to the investor to review and conditional approval/loan approval. Step 3: The investor receives the direct approval from the USDA. Step 4: We prepare for closing arrange a time/date with the applicant, title company and all parties involved."
As long as you have a reliable fax machine & printer, then applying in person or over the phone makes very little difference, unless it's at a small community bank where the bank vice president likes to meet each of their borrowers, etc. Green Planet Mortgage is a mortgage company, not a bank. I think you'd do just as fine with a loan officer in Clearwater as you would in Jacksonville or even another state. The key is the loan officer must be well versed with USDA's and their lenders guidelines, and know what their underwriters will likely approve.
Ask if their underwriter will review your file before you make an offer, as usually in Florida the inspection is done within the first week and the appraisal soon afterwards, and a survey is commonly required as well. If those expenses start without knowing the underwriter has reviewed & approved your employment history it can be a tough first few days. Everything else she said I agree with, especially if you can document a 2-year employment history prior to this long gap in employment.
I am going to disagree with Shane on this one. First I do not disagree that most trust worthy / reliable lenders operate via fax just fine HOWEVER that would be like saying "well trained police officers carry 9 mm semi-automatics AND lunatic gangsters wield 9 mm semi-automatics too so it really does not matter if either one is standing on my porching, I shouldn't worry about it.."
In my mind if you have been in talks with one member of this organization locally and ANOTHER from out of the area is telling you to fax info in that is an AUTOMATIC GIANT RED FLAG!!! Well run mortgage brokers DO NOT allow different personal to tell potential client to work around their colleagues!!
RED FLAG NUMBER TWO: USDA loan program is the most stringent about their guidelines. If you are shopping in an area where the properties might not qualify it is a waste of time. Similarly if you do not have the minimum work history you could have a letter from Secretary of Agriculture and your loan application will be rejected. Why would the lender not tell you this? Maybe they made a boo boo. Made they haven't much experience with USDA loans. Or MAYBE they are unscruplousous boobs who, in addition to screwing their colleagues have no compunction about working clients like puppets. When they fax you a 85 stack of gobbley took (as required by recent additions to federal mortgage rules) and say "sign everything and fax it back to our 800 number" they are not doing thismoutnthe goodness of the hurt but because the KNOW no human being will read all 85 pages. You will "sign everything" including forms that OK a non-USDA loan. That way when they tell you "Sorry, the USDA loan fell through" but you have an accepted offer on a house and you are feeling panicy the genius will offer a loan which much higher fees / rates / down payment and you will have nowhere else to turn...
RED FLAG NUMBER THREE: Never buy baby toys from a company called "Super Safe Baby Toys Inc."' they probably important the most deadly toxic crap from countries with no quality control what so ever. The most over used and utter Bee Slop term in homes right not are "Eco conscious" "planet friendly" and "green" -- firms that try to something they are not are to be avoided.
Now maybe I am wrong, and these guys with a fax machine are just as safe as officer friendly, but why risk it -- call another couple of lenders. Asl them if they are experienced in USDA loans. Ask them if the USDA requirements are strict. Then make your decision...
I don't think the OP contacted anyone in Jacksonville, they just initiated something with someone in Clearwater and are thinking that maybe it would have been better/or would be better to start something with a local loan officer in Jacksonville instead. I don't think any loan officer is trying to steal business from another loan officer within their company. I could have read that wrong.
How long were you out of college before you found a job?
Do you have any children at home, and if so, what are their ages?
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