Stephanie was a first-time homebuyer on a mission to find a home in a good school district for her special needs child. Her financial situation made it more difficult for her to qualify for a mortgage – limited income, inconsistent child support, and a lower credit score.
Due to Stephanie’s limited income, she tried negotiating home prices below the asking/listing price. Unfortunately, after underbidding and losing negotiations on eight houses, Stephanie began to lose hope in finding the perfect home in the perfect school district. Luckily, Stephanie found Barney Stanner at First Centennial Mortgage who introduced her to a patient and dedicated real estate agent who was determined to find the right home at the right price with proper negotiating.
While Stephanie was house shopping, Barney reviewed her financials and noticed that the child support payments received from her former spouse were inconsistent and unreliable. After discussing this potential income issue with Stephanie, she talked with her ex and he agreed to send his checks more consistently so the funds could be used toward her qualifying income.
Once that issue was resolved, another one appeared around Stephanie’s employment when she was suddenly offered the option to become an independent contractor. She took the offer thinking she would gain tax benefits. However, she did not realize this would change her status to “self-employed” and require two years of 1099 tax returns to qualify for a home mortgage. Since she was formerly a W2 employee, it would be easy to obtain two years’ worth of W2 tax return records, but as a new 1099 employee, she wouldn’t be able to get two years’ worth of tax returns and buy a home right away. She broke down in tears thinking she had lost the chance to buy a home for her and her child. Fortunately, Barney knew how to help her become qualified. He advised Stephanie to discuss the 1099 vs W2 options with her boss again. Fortunately, she was able to switch back to a W2 employee in order to receive regular paychecks to be used towards her qualifying income.
With the help of her real estate agent, Stephanie finally found a great home she could afford in the school district she desired. Everything seemed to be lining up but she would still face one more hurdle. The COVID-19 pandemic hit which caused the minimum credit score to decrease in order to qualify for a mortgage. Prior to the pandemic, Stephanie would have been approved. Barney worked closely with Stephanie and advised her to pay down her debt to increase her credit score so she could qualify.
With the help of Barney at First Centennial Mortgage, Stephanie was finally able to qualify for her perfect home in her desired school district. She is now happily in her new home, within the chosen school district, hoping that the kids go back to school in the fall. She is grateful to Barney and his advice throughout the long homebuying journey.