Re: Buying a house
Welllll.... I can tell you that when I bought a house (WITH a regular day job), the process included me presenting a current pay stub and three years of tax returns. Yes, they phoned my employer's HR department, and verified how long I had worked there and that my employment was expected to continue.
In general, the more you put down and the higher your interest rate, the easier it is to get a loan. I would not be surprised if you get turned down a time or three.
Also in general - DO put down at least 20% even if you can get a loan without doing so. Mortgage insurace is a huge unnecessary dent in your paycheck, and paying off the first 20% of your mortgage to avoid it is right behind paying your credit cards off as far as +EV financial decisions go.
There are upsides to mortgaging the remaining 80% of the house and investing your spare money elsewhere especially if you are very rich or it's a very expensive house. But if you're buying a house worth under 200k like us mere mortals, there is no gain from the interest deduction, and if you have any trouble with the bank, I would seriously consider saving up another year's worth of winnings and buying a small house outright.
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