Mortgage loan question...

[Jenn]

Can you obtain a loan without income verification and still get a good interest rate? We might be selling our house and moving to another state without DH or I have a job lined up but we would be able to put down 20% or more on the house we want to buy. I heard that we might be able to get a loan without income verification since we'd have a large down payment.

Does anyone know about this?

[Dennis]

You can definitely get a loan without the income verification but it will be at a higher rate. My brother was self-employed when they moved and his wife didn't work and they got one just fine, but at a higher rate. As soon as he got a "real" job, they refinanced to knock the rate down. So that's definitely an option for you - get a mortgage and then refi as soon as one or both of you have jobs.

Dennis

[Jenn]

Thanks Dennis. Do you happen to know how high your brother's rate was?

We have income now and plan on getting pre-approved now but I don't know what will happen when we go to settlement and neither one of us has a job yet. We would definately refi once Jeff gets a job if we need to.

[Dennis]

I think it was 8.5% or something like that, but that was a few years ago before the rates really bottomed up. I think it was about 2% higher than the "good" rates at the time.

Dennis

[Jenn]

That's not too bad. I can live with a rate that's not so great for a couple of months. Thanks again!