State Workers: 3 quick tips to make your home purchase smoother.

It’s not a secret state workers wages are being messed with! If you are a State Worker and you are looking to buy a home in today’s Market I suggest that you do the following 3 things to help make your home purchase smoother:

1. Get a Verification of Employment upfront – The VOE is something that your Loan Officer can walk you through. It is a complete breakdown of your income over the last two years and the current reflection. If you receive OT, Bonus or other compensation it should be spearated out on your VOE. This will help to take averages over time. Be sure you Employer uses the remarks section for anything out of the ordinary and states that current income reflects FURLOUGH!
   
2. Qualify with only your base Income when possible – On the VOE (verification of employment) there is a box for overtime and bonus. I am certain that the state will not mark the box that says likely to continue. With that the underwriter will not use it. This can significantly reduce what you qualify for. To avoid having to argue with an underwriter about this type of income don’t use it. The Underwriter is always right (so they think).
   
3. Check In Frequently with your LO to make sure that the approval amount still stands – If it takes a while to find a home which is common make sure that you and your LO communicate any and all changes. As your pay is changing so are rates. You can never be over cautious. It is to the benefit of each of you to make sure that all is well and still stands.

There are many other things that you can do to make sure that as a Satte Worker your approval stands. These are only a few of the suggestions and tips that I offer. If you qualify well within your budget 25-35% Debt-to-income then changes in your income will have little to no impact on qualifying. Be sure that you plan ahead not for what your pay will be when the furlough ends but what it may be in the meantime. The State is a mess and it may be a while before we have it ironed out. We will most likely be paying more in taxes with less wages for some time.