Closing Income Information On buying A home?

Question

Iam in the process of buying a 1st home, Iam about two weeks away from the closing and the company I have worked for the last 19 years downsized and let me go, I havent told the bank yet about this what happens if I keep my mouth shut??? will they check my employer before closing? do I have to sign anything stating my employment?? I really don't want to loose this house, and my payments on the house will actually be easier to make then the rent were iam now, & would it make a diffrence to add another person to the loan who is employed?

Answer 1

you are better to be honest with the loan lender or face foreclosure. this of course appears to not be your fault so you will not be held responsible. but they may decline the loan of you have no income, which is only fair to the lender.

Answer 2

As far as the bank finding out, normally by this time they would have done their primary verification checks. The only thing they normally would do is a final credit check at the time they write up the loan documents to make sure you haven't took on any new debts that would effect your DTI ratios.

You are supposed to inform the bank if there is anything that changes in your condition, especially if it would impact your ability to pay. So you should let them know.

But here is the thing, if you have cash reserves and are confident you can get an adequate job to pay the mortgage, then you might consider taking the risk. Remember though, when you move into a new home there are always extra expenses the first few months, utilities being changed, and minor repairs you find must be done, etc, plus the sheer cost of moving into the new house. When you lose income the first thing you want to do is get conservative on your spending, so you really should take a very hard and critical look at this.

As far as a cosigner, thaat is possible, but that would require a completely new loan, so you'd have to go through the whole loan process all over again, so it depends on if you, and the seller, can wait.

Tough decision. I hope you find the best one.

Good Luck

Answer 3

You are required to notify the lender of any changes to your situation that materially affect your qualifications for the loan. Loss of a job most certainly would qualify as a material issue unless you have substantial other resources to make the mortgage payments from.

Typically the lender will make a final employment verification check within 24 to 48 hours of the proposed closing. If that comes back negatively, the loan will be stopped cold in its tracks.

Adding a co-buyer to the home who has sufficient income to qualify may well rescue the deal but will very likely delay closing while they are checked out by the lender.

Alternatively if you have excellent credit and substantial resources in savings or investments it may be possible to switch to a no-doc loan instead but this will increase your interest rate and payments and again will probably delay your closing.

Answer 4

sorry to say any lender will do a verification of employment, unless you have credit scores high enough to do a true no doc loan where nothing is proved where no employment is even written on the loan application. Your best bet is to let the loan officer know whats going on so they can change loan programs or add another to the loan before it gets too far in the process. As a Loan officer myself this type of thing can really mess things up.

Answer 5

the financial institution does 2 credit checks and employment verification...one at the front end to qualify you and one just a day or so prior to closing to make sure nothing has changed....it is best to be upfront with the finance company...as for adding someone to the loan...ask- but remember it will extend the length of you loan process....but it may get you the home.

good luck