Losing your job prior to closing on the purchase of a home can be disheartening and stressful, especially if there is no other source of income in your household. Although landing a new job will alleviate most of your stress, there’s no guarantee that your lender will approve you for a home mortgage loan during your probationary period. However, it helps to consult with experts.
What Do You Do if an Unexpected Loss of Earnings Dashes Your Home-Buying Dreams?
Inform the lender or mortgage provider immediately – although you may be tempted to keep the loss of your job a secret, that’s really not the smartest approach. Prior to approving your mortgage, the lender will verify your employment and earnings. So the lender will find out soon enough. The reality is that you have an obligation to inform the lender or mortgage provider about your circumstances. If you fail to do so, that may be considered mortgage fraud.
Is your job loss permanent or temporary? The lender’s decision to proceed with your application may depend on whether losing your job is permanent or temporary. If it’s temporary, providing the lender with a letter from your employer concerning when your job resumes can be very helpful. Lenders must be aware of your income status and whether you’ll have the financial means to repay them according to the loan agreement.
Did you apply for the mortgage loan with a partner or spouse? In other words, was it a joint application? If it was, the lender may proceed and allow you to close on the deal provided your partner or spouse has a job or a source of income sufficient to cover your financial needs. On the other hand, if their income will not be sufficient to support repaying the loan, you may have to settle for a lower mortgage loan.
Find another job A.S.A.P. – If you’re fortunate enough to find another job immediately, there are a number of factors that the lender will have to consider when determining what to do about your loan after losing your job and finding another one. Stephen Mcwilliam of Florida State Mortgage quoted “One of those factors is the type of job and the amount you’ll be earning. In some cases, the lender may require that you earn more than you previously did.”
Home Purchase with Florida State Mortgage Group, Inc.
Losing one’s job is no doubt an unfortunate and discouraging circumstance. However, talking with a Florida State Mortgage Group, Inc. professional could ease the burden of your circumstances. To learn more, contact us today at (954) 359-3000. Our business representatives are available for your assistance. Call us today!.