Can a loan be denied at the last minute because my husband's company just announced plant closures?

Asked by ambmi, Richmond, TX Thu Feb 28, 2013

We are a few days from closing and my husband was just informed that his office is closing in 6 months. He is a career employee so he can not be laid off. As a government employee, they HAVE to transfer him or allow him to change offices. He is entitled to keep his wage and benefits. When the lender does a VoE, they will not be told of the closure, but it's been all over the news in our small town. Do I need to worry?

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Dan Tabit’s answer
Dan Tabit, Agent, Issaquah, WA
Thu Feb 28, 2013
If worrying helped, I say go for it. The truth is the lender can deny any loan right up to the last minute for any reason they want. They are looking for cash, collateral and an ongoing source of income. If you can demonstrate to them that your husband's income will not be affected by the closing, then you have nothing new to worry about. They can and often do order a VOE at closing just to ensure nothing changed from the time of application to closing. If the person who answers the phone says anything contrary to ongoing income, you could indeed have a problem.
If he got transferred, would you still want this house or could he be transferred a long distance away? If it's local, just across town then fine. If it's out of state or across the state, that's another matter.
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John Chaney, Agent, Overland Park, KS
Thu Feb 28, 2013
Not if you are qualified for the loan without him.
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