Hi so I am seeking advice.
Mt wife and I are under contract to buy a place and close by April 30th.
I was just let go from my job. While we have all of the money in place to close and it shouldn’t be a problem covering the new mortgage. Furthermore my wife’s income is a lot higher than mine.
I’m nervous to tell the lender/ will they find out before we close? It’s currently being underwritten and they have my most recent paystub/ they are monitoring our bank accounts and I just got my last check deposited.
I assume they will call my employer before closing?
What should I do? Come clean and get ahead of it or just sit tight?
Posted by ibmully
11 Comments
Tell your lender.
The lender gonna find out so just tell them
You need to tell them ASAP especially if you’re also on the mortgage.
You have to tell your lender, you sign docs saying you’ll alert them to anything, and they do tend to verify as you get closer.
If your wife’s income falls within the acceptable percentage to cover the mortgage, insurance, and property taxes. You will be fine, I think rough estimate is 38% of income for housing.
Definitely tell the mortgage company. They will verify your employment a few days before closing.
do you know if you qualify based only on your wife’s income?
If so, then it may alleviate your fear. Because you’ve signed something along the way saying you would inform the lender of any significant changes like job loss.
The lender does a verification of employment a few days before closing, and they will find out. Unless you qualify with just your wife’s income, you will have an issue. If you can qualify with your wife’s income alone, you will be okay, but you need to make sure the loan is updated now or they will have to fix this before closing, and it will delay your closing.
Had this happened to a client the day of closing, and the employer said he no longer worked there, he didn’t know he was fired yet, and we had to tell him. Canceled on the home, got a new job, and closed on the new home within about 45 days.
You need to notify the lender immediately. You better get your denial for a mortgage letter ASAP so you can cancel the sale before your contingency expires and you lose your EMD.
I’m a mortgage lender… FNMA / FHLMC require all lenders to re-verify your employment within 10 days of closing. Most people don’t even realize this happens but it’s standard / required “back end process”.
I would have your lender start checking into qualifying in your wife’s name only. If you have any monthly payments that are not joint with her, it may be best to take you off of the loan completely. You will still be an owner on title but you can’t add any income so… removing you from the loan also takes any of your debts out of the calculation.
Call your lender today. It may sink the financing, it may not. But you still have time… if you wait until they do the final employment check 1 week out you definitely will not have time.