Home Buying in 18951>Question Details

Allen And Ka…, Home Buyer in Quakertown, PA

USDA loan approval with recent job change???

Asked by Allen And Kamrinne Zelno, Quakertown, PA Thu Apr 25, 2013

I am pre-approved for a USDA loan and our LO said his underwriter doesn't see a problem getting approved. I put an offer on a house and the buyers are questioning my ability to get final approval for a loan because I recently changed jobs. I was in education for over two years, then I went into banking for 10 months, finally I got back into education about a month ago. LO/UW both say a good letter of explanation should be fine. All other factors are fine: 700 credit score, 23/38 front/back ratios, co-borrower with steady continuous income in same industry for two years.

Basically - do I have reason to worry? (Yes, anyone applying for a mortgage should worry) BUT, should I worry enough to the point that I shouldn't risk the money for an inspection/appraisal/radon-testing? Further, I don't want to lead-on the sellers to believe that I'll get approved when they're also hoping to move into a new home of their own!

Help!

Allen

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If you have had full and honest discussions with the Loan Officer, and he has given you a green light (pre-approval), then that is the best indication you can get at this time that you should be able to get a mortgage.

Buying a home requires a small leap of faith that all will work out in the end. Speak candidly to your agent about your concerns.....and be sure to provide all information requested by the Loan Officer as quickly as possible. They will ask for lots of paperwork, including some duplications shortly before settlement to reconfirm you are still working etc etc.

As with any home purchase, be prepared for a bit of a roller coaster ride, but as long as you are doing what is asked of you, and you are reasonable with the results of the the inspections, you should end up with a successful transaction and move in on schedule.

Go for it !!
0 votes Thank Flag Link Thu Apr 25, 2013
Wow, I appreciate your enthusiasm and encouragement! Thank you for taking the time to answer my question and ease my mind. God bless you.
Flag Thu Apr 25, 2013
Yes move forward with your agreement and do your inspections. If your loan officer and underwriter
are ok with you just getting a letter of explanation then you should be in good shape!!
0 votes Thank Flag Link Tue Jun 25, 2013
Allen, you should be fine and the sellers need not be questioning your loan application. Not sure how they even became aware of your employment situation. If you are dealing with agents I would keep in contact with your agents and let the agents deal with each other and the sellers. Your main focus is your application, not the sellers.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Banker of 10 years
http://www.everlastingcredit.com
0 votes Thank Flag Link Fri Apr 26, 2013
Thanks Christina,
We had to fill out a buyer information sheet and submit that with our offer. That sheet had employment information on it as well as salary. I guess this is supposed to show the strength of our offer. Not sure if it is standard practice...
Thanks.
Flag Fri Apr 26, 2013
The USDA loan has a few drawbacks, but they are not insurmountable.
1. Your income needs to be low enough to warrant the USDA subside.
2. The USDA loan is subject to USDA funding. This is the big thing. Once qualified,
it does not assure you that the money will be available. You will only know that after making full
application.
3. Your income can be reviewed ever 4 years (I think its 4), and if your income goes up, the USDA subside will decrease. (ie. you monthly payment will go up.)
4. The USDA loan has specified geographical areas where the properties must be. These areas can be found on a locator map on the USDA web site.
Good Luck
0 votes Thank Flag Link Fri Apr 26, 2013
Hello Allen,

Sounds like you will be fine.

Alan
0 votes Thank Flag Link Fri Apr 26, 2013
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