Home Buying in Brea>Question Details

mariamaosman, Home Buyer in 22003

I became unemplyed after being pre approved for a loan and putting an offer on a house?!?!?

Asked by mariamaosman, 22003 Fri Dec 28, 2012

my husband and I are first time home buyers. We were pre approved for a loan and we put an offer on a house that was later accepted. Before closing on the house I became unemployed. I have stellar credit and my husband's credit is average. How if in any way will this affect our home buying process. I was told that my name should be removed from the loan application or to the offer for the house. Is there any truth to this?

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I am sorry to hear about your situation. Talk to your real estate agent and let them know the situation. Hopefully your loan contingency is still in place. Update your lender and see if you still qualify for the loan. Your agent and lender should than be able to advise you on how best to proceed. Get their advice as soon as possible.
Good luck,
0 votes Thank Flag Link Sat Dec 29, 2012
The best thing to do is consult with your loan officer about this situation. They will guide you as to the best option.

0 votes Thank Flag Link Fri Dec 28, 2012
Maria: Prior to releasing your loan documents, the lender will employers to verify that all parties are still employed at the time of close.
If your husband qualifies for the loan alone, there is no need to worry.

The only reason it would be necessary to remove you from the loan would be due to your monthly debt causing your remaining borrower's qualifying ratios to exceed 45% on the 'back end'.

If your husband qualifies with your debt and his own income, there is no reason to remove you from the loan.

Should you become employed, the lender will require a copy of your first paycheck stub before they will fund the loan.

Good luck to you! :)
0 votes Thank Flag Link Fri Dec 28, 2012
Probably accurate that you want to submit a pre-approval without you on it. The lender is going to verify employment again before they grant the final loan approval. Hopefully, you have a loan contingency in your contract for exactly this reason.

If you can qualify to purchase the home on just the one income, the seller will co-operate in making the change, as long as it does cause a lot of delays. Check with your lender for advise on this, but do not expect your change in employment status to go unnoticed. Getting ahead of the problem and disclosing is more likely to salvage the purchase, if you can still get the loan. If someone else discovers on the sellers and late in the process, your credibility will probably be damaged and they may kick you out of contract and remarket.
0 votes Thank Flag Link Fri Dec 28, 2012
This will affect your pre approval because your household income has changed and also your debt to income ratio. If your husband has enough income to still qualify for the home then you guys may be ok but this is really something that you need to speak with your lender and your real estate agent about.
0 votes Thank Flag Link Fri Dec 28, 2012
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