I%26#039;m pre-approved for a mortgage and looking for a house. We want to buy quickly because my company is probably about to be taken over. I still want to buy right now because I can make payments while I look for work, if I get laid off, but I can%26#039;t get the mortgage while I%26#039;m unemployed. So if I get approved and lose my job before closing will the bank find out, do they do another check before closing? Will they pull my loan? I guess I just need to know when I%26#039;m really safe that I have my mortgage and what can happen if I lose my job in the process? Any bankers out there?|||If the bank does a verification of employment before you lose your job then you should be safe.
I have, though, seen banks verify your employment as late as the closing table. Especially if there is a cause that makes them suspicious (ex: having trouble coming up with the funds for closing)
If the bank does find out that you are unemployed, then, yes, they will definitely not approve your loan. Depending on where you are in the process, you might not get your earnest money back either.
It is a dangerous thing to try and purchase a house with out any job security. In some states, banks can foreclose if you are only 30 days late|||In most cases, within a couple days before closing, the banks will call your employer and do a verbal reverification of employment, so there%26#039;s a good chance they%26#039;d find out.
Additionally, at closing, you will have to sign an affidavit that nothing in your financial situation has changed since application. Losing your job counts. So, you%26#039;d have to lie on a legal affidavit, so that%26#039;s fraud. Federal prison.
You need to be honest with your lender. And if you%26#039;re really concerned you might lose your job, start looking now, so maybe if you do get fired, you can move quickly and keep going on your home purchase.|||Yes -- my underwriter/loan officer was calling me at work the week I closed for paperwork I had already provided. If they get suspicious, they%26#039;ll pull out.
Why the hurry? Are you in a low unemployment area? Are you certain you%26#039;ll find another job quickly? If I were you, I%26#039;d wait until you have another job. You don%26#039;t need the stress of a mortgage AND unemployment. Sure your pre-approval will expire -- mine did because I didn%26#039;t find a house I liked. No problem, that just means your credit document expired. All they do is check your credit again. You don%26#039;t have to start from scratch (if you go to the same lender).|||If you have a new job in the same field (type of work) that you are already doing it will not be a problem. If you make the same income or more. Just make sure that it is the same type (area) of job or they could turn you down. If you know that your company is being bought out you may want to look anyway. If you are in finance now stay in finance. Whether a teller or loan officer. It doesn%26#039;t have to be the exact same job just same field. Like you can be a server for a restaurant and become a host or manager. It just needs to be in another restaurant with similar work and pay.
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