“Staffing job trends lead nonfarm employment by three months when the economy is emerging from a recession” American Staffing Association
Staffing employment in February was 13% higher than in the same month last year, according to the ASA Staffing Index. Sounds like great news. Staffing agencies are starting to place people in jobs. It makes sense; companies are starting to grow again but are a little hesitant to add too many costs so they turn to agencies to hire. Great, that just means there are more qualified buyers out there right?
Wait, hold on a second. Be careful. In the eyes of most lenders a staffing job is a “temp” job. Yes, I know that often a position placed through a staffing agency is considered a permanent position. Yes, often it might be more secure than a direct hire’s position. Unfortunately in the eyes of most lenders it is still considered a “temporary” position.
Even further, keep in mind that your clients may not understand this. I recently had a borrower call me to be pre-qualified. Of course one of the first questions I asked was where he worked. He explained he just got a new job with Kraft Foods. Great, I said and started discussing the job and some numbers. As the conversation proceeded to unfold I happened to ask him how he found the new job. When it came down to it, of course he was being paid weekly by the staffing agency. Yes he worked for Kraft, but technically his employer was the staffing agency…or in the eyes of the lender the “temp” agency.
Just one more reason it is important to have your buyers pre-qualified!
If you are in need of a mortgage in Morris County, Middlesex County, Sussex County, Bergen County or anywhere in New Jersey please give me a call!