topic Re: Losing job during mortgage approval in Mortgage Loans

Losing job during mortgage approval

geralddkj — Wed, 24 Jun 2020 01:50:13 GMT

I have literally been stalking these boards for a decade. Brought our scores up from 500s to mid 750s. We are already home owners...in our current home for 18 years. We just closed our refinance 6/15 with the intention of renting. Placed an offer on a home in the neighborhood of our dreams and the offer was accepted the same day ( 10K less than asking). Then the unimaginable...my husband was laid off today. Wanted to share. Not sure where to go from here. I know I need to call the LO tomorrow.

FHA...$263k purchase, 2.85 interest rate. 5% down

What next?

Re: Losing job during mortgage approval

Anonymous — Wed, 24 Jun 2020 02:53:56 GMT

I am terribly sorry to hear about your husband being laid off. That is awful.

Are you trying to see if you can proceed with the purchase, or figuring out if you can get out of the purchase without losing earnest money (should have a financing contingency I hope?)

Do you work, and if so what is your income? How much equity do you have in current house? Are you set on keeping it to eventually rent it, or might consider selling it if it meant being able to proceed with purchase on new home?

Re: Losing job during mortgage approval

JVille — Wed, 24 Jun 2020 03:21:07 GMT

To proceed you will need to qualify on "YOUR" income, can you? Your EM will not be lost because you no longer qualify for financing (unless you actually do qualify on your own).

Good Luck to you!

Re: Losing job during mortgage approval

geralddkj — Wed, 24 Jun 2020 03:26:02 GMT

Thank you.

Yes, I am definitely trying to proceed with the purchase and would like to still rent out our current home ( will sell if that's our only option).

There is a contingency in place..thank goodness.

Yes, I work and my salary is $145K.

Re: Losing job during mortgage approval

geralddkj — Wed, 24 Jun 2020 03:35:38 GMT

Forgot to add.~ 60K in equity on current gome.

Thank you for the replies. Will keep you posted.

Re: Losing job during mortgage approval

geralddkj — Thu, 25 Jun 2020 01:03:35 GMT

Spoke to my LO today and she thinks it will work with my salary along with a signed rental agreement and copy of the check for the 1st month's rent!!

Re: Losing job during mortgage approval

Mortgage-Specialist — Thu, 25 Jun 2020 15:52:10 GMT

If you have no documented history of renting out a home to renters prior to now, underwriting won't accept rental income. If your loan officer is using this income to qualify you this could be a long messy process. Underwriting just told me this info.

Re: Losing job during mortgage approval

geralddkj — Thu, 25 Jun 2020 17:29:19 GMT

Oh no. Thanks for the heads-up. I just paid for the appraisal, but at least I have the financing contingency in place in case things go awry. Not scheduled to closed until 08/03, so hopefully that's enough time in case I need to dip into 401K to bring DTI down.

Re: Losing job during mortgage approval

geralddkj — Sun, 28 Jun 2020 23:38:43 GMT

Question. Wouldn't these guidelines apply? I am to receive the FMR amount this week from the appraiser. Already have a signed lease and first month's rent for $1700.

Re: Losing job during mortgage approval

Mortgage-Specialist — Mon, 29 Jun 2020 00:26:16 GMT

This is an important question which is why you should demand your loan officer ask underwriter who is underwriting your file. They should have done this instead of "Lets see if it works" as its preventing you from pulling out the correct amount from your 401k which can delay this loan process. Its a simple phone call or email that your LO shouldve made to the underwriter

The underwriters I've come across wouldnt use rental income unless they've proven a history of renting previously.

I'd like to know your LO's response

Re: Losing job during mortgage approval

geralddkj — Thu, 02 Jul 2020 22:26:18 GMT

Received a response a moment ago - that my file has been submitted to underwriting. Now we'll see what conditions come back...

Re: Losing job during mortgage approval

geralddkj — Wed, 15 Jul 2020 06:07:30 GMT

Wanted to provide an update. My file is out of underwriting and I've been cleared to close August 3rd! Turns out they accepted my signed lease along with proof of first month's payment! I never stopped packing, so we're almost done! So excited....

Re: Losing job during mortgage approval

Anonymous — Wed, 15 Jul 2020 13:32:44 GMT

That's great to hear! FHA usually the killer on rental income from departure residences is not having more than 100 miles between the departure residence and the one you're buying.

Once you get over that hurdle it's just 75% the lesser of Operating income on Form 216 or lease agreement no prior history needed. Enjoy the new home!

Re: Losing job during mortgage approval

geralddkj — Wed, 15 Jul 2020 19:56:36 GMT

Thank you!

Re: Losing job during mortgage approval

geralddkj — Sat, 25 Jul 2020 16:55:55 GMT

Another update. This mortgage stuff seems more convoluted than the first time I bought...I've signed the final disclosure, but my closing date has been moved a few times. It was 8/3, then 7/30 and now 07/31. Walkthrough and closing on 07/31.

Re: Losing job during mortgage approval

geralddkj — Fri, 31 Jul 2020 01:49:51 GMT

Just received the final statements from the title company. Walkthrough at 10am tomorrow, closing at Noon, table funding, will have my keys tomorrow! It's been a journey with my husband losing his job and all. I wish good luck and blessings to everyone. Toodles!!

Re: Losing job during mortgage approval

geralddkj — Fri, 31 Jul 2020 20:39:05 GMT

I closed! !!!! Keys in hand.

Re: Losing job during mortgage approval

trudawg660 — Fri, 31 Jul 2020 21:10:37 GMT

congrats!

Re: Losing job during mortgage approval

geralddkj — Fri, 31 Jul 2020 22:50:20 GMT

Thanks

Re: Losing job during mortgage approval

AllZero — Fri, 31 Jul 2020 23:36:01 GMT

@geralddkj wrote:
I closed! !!!! Keys in hand.

Congratulations on your success! Enjoy your new home!