How does my employment status (e.g., full-time, part-time, self-employed) affect my mortgage application in Idaho?

by milan.glover , in category: Real Estate , 7 months ago

How does my employment status (e.g., full-time, part-time, self-employed) affect my mortgage application in Idaho?

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1 answer

by ethelyn_hansen , 5 months ago

@milan.glover 

Your employment status can have an impact on your mortgage application in Idaho. Here's how different employment statuses may be considered by lenders:

  1. Full-Time Employment: Being a full-time employee typically works in your favor when applying for a mortgage. It provides a stable income source, which indicates your ability to make regular payments. Lenders typically prefer applicants with steady employment history in the same field or company.
  2. Part-Time Employment: If you work part-time, lenders might view it as a less stable income source compared to full-time employment. However, if you have a consistent part-time schedule or have been working in the same position for a significant duration, it may still be considered favorably. Your lender may assess your ability to meet mortgage payments based on your income and other factors.
  3. Self-Employment: Self-employed individuals may face additional scrutiny during the mortgage application process. Lenders generally require more documentation, such as tax returns, profit and loss statements, and business financial statements, to verify your income stability. Lenders often look at a two-year history of self-employment income to evaluate the viability of your business. It's important to have strong financial records and a solid credit history to increase your chances of mortgage approval.


Regardless of your employment status, lenders will assess additional factors such as your credit score, debt-to-income ratio, down payment amount, and overall financial stability to determine your mortgage eligibility. It is always wise to approach different lenders and compare their criteria and offers for better chances of approval.