I asked recently about buying a home given that my job will almost certainly be going away in a few months due to a corporate merger. I want to stay in this area for a few years and have a decent amount of $ saved, and hate renting my current apt. But one of the golden rules supposedly is that you should never buy a home if your job situation is unstable. Instead, on here people mention the 2 year continuous job history rule lenders have and say I should rush out and buy BEFORE I lose my job. I work in IT in an area with plenty of companies, but still, such an investment when my job is almost guaranteed to go away...wise move?
2006-11-17 08:10:04 · 7 answers · asked by Atlas 1 in Business & Finance ➔ Renting & Real Estate
Folks, I am not looking for legal answers, i.e. "the lender will/will not do this if you are in this situation..." I am asking if buying a home is a wise idea given that my job will probably be going away in a few months, meaning I won't have an income to pay the new mortgage! Yes I can *probably* get a similar job if I am laid off, and I will have severance, but again the golden rule supposedly is that you shouldn't buy if you think your job will be lost..period. So why do so many here think I should forge ahead in my situation (most giving that advice seem to be mortgage lenders...)
2006-11-17 08:33:58 · update #1
Two quick suggestions. First you should look for another job. It won't really matter if you own or rent; you will either loose your home and have bad credit or have an eviction on your record. As far as buying a home is concerned I would not unless I had 6-12 months emergency funds for mortgage, taxes, insurance, utilities, food, gas etc and you had another job lined up.
2006-11-17 09:44:52 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
My opinion: Unless you are going to qualify for a "stated income" loan (you have to have OUTSTANDING CREDIT)..Your lender will send out a job conformation to your employer..And if your job is only going to be secured for two more months..It will not look good to the lender..I mean seriously..If it takes 30 days to close the escrow and then your 1st house payment will be due 30 days from that..You will not even have a job when your first payment is due!! That is SCARY..If you get a new job in a similar field then you should not have any problem qualifying later..I think they look more at job stability than job longevity..
2006-11-17 08:26:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My opinion is that if you think you might not be able to make a mortgage payment or two due to unemployment, don't buy a house. If you are late on a mortgage you risk damaging your credit. If you're late on rent, you may have to pay a late fee.
If missing a mortgage payment isn't your concern, then buy. After all, you have to live somewhere, so why make your landlord's mortgage payment when you could be making your own?
Rick
www.fairwaymortgagelending.com
2006-11-17 08:19:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would not when you are looking for work you may be forces to jump in to a new job at a much lower income. Trust me once you have the pink slip you will have more stress after the first week of wacthing oprha.
2006-11-17 11:48:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can't be approved with out a secured job, and, you are correct, a 2 year Verification of Employment is necessary. If you are leaving your job, DO NOT TELL THEM! (p.s. you didn't hear that from me). I'm a loan processor.
2006-11-17 08:17:26 · answer #5 · answered by Bean 2 · 0⤊ 0⤋
Get a new job first then the house the you will breath easer
2006-11-17 12:28:44 · answer #6 · answered by pattibcacl 6 · 0⤊ 0⤋
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2006-11-17 08:12:58 · answer #7 · answered by yummy _ 3 · 1⤊ 0⤋