can a bank cancel your mortgage if....??

[Anonymous]

can a bank cancel your mortgage if you lose a job but continue to make the payments in full, on time??

this is a two part question...and just answer this based on knowledge....im trying to create a hypothetical situation...

johny makes 50k a year and wants to buy a house.  he contacts a mortgage company and gets pre approved for 175k based on his w2 and debt to income ratio.  his credit is 780.  the houses he looks at are in the 275-300k range.  in order to get a bank to approve him for a larger amount, he needs to get another job making more money.  so he gets a job as a sales rep for an advertising company and starts earning 800 a week.

question 1.... how long does he need to make 800 a week before he can get re-pre-approved for a larger amount?

question 2....if he gets re-pre-approved for sayyyy ummm 245k, he finds a house, buys a house, and he starts making payments....then he looses his advertising job, however he still maintains his mortgage payments on time from the help of family, friends and his savings will the bank contact him like " we see you lost your job, how will you be able to make these payments?"

[Lel]

In general, lenders want to see evidence of long-term job stability before they will use the additional income as a factor for loan approval.  I believe the general rule of thumb is two years of consistent earnings (with allowances for certain seasonal jobs, such as a school bus driver), but some people have reported getting approved shorter earnings history - for example, if they take a new job in the same field but with higher income, then less time is required (one year?  It will vary with the individual).  Someone with more up-to-date information might step in to expand or correct these numbers.

And as long as the payments are being made on time, regardless of the ultimate source of the funds, the lender will not "cancel" the mortgage.  To do so would be a money-losing effort on the part of the bank.

[chasmith]

Generally mortgages aren't "callable".  HELOCs generally can have the credit limit cut, but the principal cannot be accelerated without a default.  It;'s all in the wording of the contracts.