Have you recently started a new job and are you finding it difficult to get a loan while still on probation? You've been keen on purchasing a new home now that you have evidence of an income that can afford this purchase, but the banks are telling you they can't get you a loan until your probationary period is over.
You may be on a 3 month or even 6 month probation period, and this may seem like a really long time, so why wait when you can get a loan approval earlier? You may wonder why the banks can't help when clearly you work regular hours and on top of that you may also be receiving overtime income.
Why can't the banks see this? The banks simply believe that lending money must be done cautiously as one loss can wipe out the profit they make from many loans.
As an employee subject to a probation clause in your employment contract, the banks may fear that your employment can be terminated at any time, meaning you can no longer afford to pay your mortgage.
Most credit assessors have this idea in their minds, and as a result will decline your application.
So what are your options? Luckily, there are still some lenders who may look at your situation differently.
Lenders with competitive interest rates as well as non conforming or non-bank lenders can assist you in getting an approval for a mortgage.
They can still offer all loan types for this situation including professional packages, basic loans, lines of credit and fixed rates.
You can use these loan types for purchases, investing, refinances, and construction, so you still have a variety of options available.
If you find that you are in this employment situation the best way to find a loan is by dealing with a mortgage broker who specializes in financing for an employee under probation.