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I'm working on getting pre-approved. I talked to a lender and they said I needed two years of income verification. I told them I've been with my current employer for 9 months and they said they wouldn't be able to approve me. However, I left something out when I was talking to them.

I wasn't working for 9 months (before my current job) but before that I was employed somewhere else for 22 months. I have tax returns for the year of 2013-16.

If I mention that, is there a possibility that I could get pre-approved? Or are they looking for two years of continuous income?

I took nine months off to get back into school.

Kyle Spinale · Answer

@Andrew Postell

I stand corrected, the letter from my bank says I'm pre-qualified for a mortgage; not a loan. I know the people who work there and I'm sure they'll be happy to work with me. Thanks again for the helpful information .

Andrew Postell · Answer

@Kyle Spinale get used to receiving those letters.  You'll get all sorts of mail saying you are prequalified for loans, credit cards, etc.  You may even get letters stating that for mortgages too.  These letters are run through a system that just mails them out to anyone who is over a certain credit score or meets some type of a profile match.  It might turn out that you are prequalified but receiving a letter about a loan is not the same as a mortgage.  Same goes for credit cards too.  As always, if you choose to speak with any of these banks interview them thoroughly and I would advise for  you to not allow them to pull your credit until it is time to do so.  In these types of conversations you will learn what to look for.  If the bank is hesitant to give you the information you need to make a decision then that should tell you something about that bank.  Hope this helps.

Kyle Spinale · Answer

@Andrew Postell, very helpful response. Thank you.

They didn't shoot me down right away. At first we went over my assets & debts, credit report, and then the income. He said I don't qualify right now so I felt a little let down. I felt like I was on the spot so I didn't mention my previous work history and how I can provide tax returns for the past three years. Next time I will be sure to mention all of the details.

I'm not frustrated (yet) because it was my first time trying to get pre-approved. Ironically, a few days later I got a letter from a bank where I have an account saying that I "pre-qualify" for a loan. Is this the same thing as being pre-approved?

Kyle Spinale · Answer

@Stephanie Irto

The training wasn't related to my job, it was just college. I guess it could pertain to the job but I didn't take it for my job. I didn't mention it to the lender because it was my first time talking to one and I felt like I was on the spot.

Next time I'm going to write down the things I want to mention.

Andrew Postell · Answer

@Kyle Spinale  If the lender said "you don't qualify" after you saying just one thing about yourself then you should look for someone else to work with.  It's the lender's job to earn your business and get to know you.  They should be looking for ways to QUALIFY you, not the other way around.  Most people don't know what is needed to qualify and that's why the lender should help teach you and inform you on what to expect.  What you went through is so common in lending and it's why there's so much frustration towards banks - and rightfully so.  The short answer is that yes, talking through your entire scenario will help getting you qualified.  Your job gap may or may not even matter but it's important to talk about.  Even if you can't get prequalified for a conventional loan there are still portfolio options.  If your lender doesn't know the difference between these two loan types then find a lender that does.  Hope this helps.

Stephanie Medellin · Answer

@Kyle Spinale  School is considered as part of your employment history, so even if you took time off to continue your education that isn't necessarily looked at as a gap in employment.  Was the training related to your current job?  Did you mention this to the lender?

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