Nice. You should only need a 620 score for a 203k loan so I have no idea what is going on there. If you switch to a new mortgage company they would check your credit. If you stay with the same company they wouldn't need to recheck your credit assuming you close and fund within 120 days of when the credit was last pulled.
As far as the job deal, is he paid commission or is he on a 1099 (self employed, they don't take taxes out of his check)? If so, that is why they need him hourly. If he's salary, no big deal.
I hope this helps and call me or email me with anymore questions.
Senior Vice President
3933 75th St
Aurora, IL 60504
I would agree with Tony that communication is the key to this.
We do many 203K's and the minimum credit score is 620 not 660.
This is probably due to the lender trying to make enough money to compensate for their time.
The 203K is a great loan but is a bit expensive.
If you are not getting "instant equity" it may not be worth doing.
As far as the employment issue that is a lender specific issue.
Most lenders would ask for a contract offer from the new employer as well as 1 months pay stubs.
It sounds like that is not a big problem as long as you are not a commission job.
One of my co-workers has wrote a great blog about the 203K.
Please take a look and this may be a little more information for you.
We also have a 203K flyer on our web site listed below.
If you have any other questions please do not hesitate to contact me anytime.
At the closing table, you're going to sign a piece of paper that says you've done nothing to affect your ability to purchase the home since making the loan application. So, maybe that's what you say to get the conversation started with your lender.
Whenever you purchase a home, you should never do anything that could change your ability to purchase the home between the time you sign the purchase contract and closing. You don't change jobs, you don't apply for other loans or credit cards, you don't buy a car, and you don't change lenders unless absolutely necessary (and I understand sometimes it's necessary). All of those things will affect your credit score.
Good luck with your closing. And, remember, if you're first time homebuyers, you have an incentive coming to you!
Don't take this the wrong way, but some of this you may have brought upon yourself. First that it is a 203k loan, which is very complicated in the first place, but also switching jobs in the middle of the process and trying to switch lenders. Also, you didn't mention WHY the credit has decreased. Have you made late payments, opened up new accounts, or added at all to your debt? It might not be the lenders fault here, but either way it sounds like there is a communication breakdown.
With that being said, it is very possible they will pull a new credit report prior to closing. It depends on their policies, as well as the policy of the investor (if they are a broker selling the loan). Any pre-approval is contingent on your financial condition (including credit and employment) remaining unchanged from the time of application. Either way I would speak to the loan officer immediately. If you cannot get a hold of him ask for a manager. It doesnt sound like they are asking for anything out of the ordinary with regards to the job switch. Income must be fully documented. Normally you need a signed offer letter outlining the terms of compensation along with a month or so worth of paystubs, and it's gotta be hourly or salaried - no commission or anything like that. Voice your concerns to the lender or his manager and hopefully you can get resolution - good news, bad news, or otherwise
Thanks for you help any help will be greatly appreciated this whole experience has just been aweful!