Home Buying in 43217>Question Details

Edmondpp, Home Buyer in Glen Burnie, MD

Lost job waiting for loan committment. 2 weeks to close.

Asked by Edmondpp, Glen Burnie, MD Fri May 17, 2013

I recently bought a house using the VA loan process, was preapproved, have the insurance, inspection, as far as I know everything is done except the underwriting/ loan commitment? I close in 2 weeks. I also separated from my house this week. I have 3.5 months worth of healthy income and benefits, but legally am no longer employed w company. I don't know what to do, and I still want house and have means to pay mortgage for several months. Am I at risk to lose home and should I run out and get a job to show employment. I am interviewing already as well, so maybe this is moot. am i ok, and don't worry? I did supply tax info, w2, bank statements, check stubs in my approval process... Please help. Nervous wreck.

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I totally agree with my collegue.

If you have a fixed income, the underwriters like for the continuance to be for 3 years. That's not the case in your situation. You received a fixed income, lump sum, for 3 months.

If you get a job in the next two days AND it's in the same line of work AND you have a solid history otherwise (credit/assets/housing history etc) it's possible to obtain approval and for you to meet the terms of your contract. Even if all is well though, you still need to provide your first paystub from your new job and a verification of employment will have to be done with them by the lender you're working with. Without the new job in place there's no way to calculate income.

So, not only 48 hrs of closing a verbal verification will be attempted. You'll also sign a final 1003/application at the closing table. Right above your signature it says under penalty of perjury everything contained is true to the best of your knowledge/ability. First page of that includes employment and second is income.

I'm not trying to add more stress than there already is to your stressful situation. You asked and I'm sure you're looking for an honest answer. Yes too, please, call your loan officer!!!!! You don't want things to seem as if this is something you're trying to sweep under the rug. That's a nice way of saying committing fraud.

Best of luck to you in finding a new comparable job, quickly, so you can purchase a home.

Kim Lawson
Licensed Ohio Mortgage Loan Originator
Licensing and contact information is located in my profile.
0 votes Thank Flag Link Fri May 17, 2013
Find a job as fast as possible, communicate with the lender & have your agent call the seller's agent right away. If you find a job in the same field the lender will probably want to see your 1st paycheck before closing.

Good luck!
0 votes Thank Flag Link Fri May 17, 2013
Hi Edmondpp,

You need to contact your lender as soon as possible..like today. Underwriting will find out a few days before the loan commitment anyway that you are no longer employed and will want to know where you are working. They could decline the loan. You need to get ahead of this. Talk with your loan officer about your options and what they could do. If you can't qualify for the loan at this time ask the loan officer at what pay on a new job will keep this going. Then talk with your agent about getting an extension on the existing contract for the closing. If underwriting will approve of your loan with a new job in place,which will be very tough to do, and you can get an extension on the closing date you might be OK. Other options is to get a co-signer on the note. What you need now is to create more time.
I wish you all the best.
0 votes Thank Flag Link Fri May 17, 2013
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