Mortgage as been approved, but a problem with my current job

cheese9988 · Joined: 22 Jun 2008 Posts: 2

We are in the process of buying our first home. It is set to close in the next week or two, earlier because of what I describe below. The mortgage has been approved, we are just waiting for title work and a couple of things from our attorneys.

The problem we have is that I took another job in the process. Basically I was almost forced too, the old boss is running the company into the ground and owes me money and this was the first opportunity I have seen in almost a year. It involves a pay raise in the same career field. I just gave notice and will start the new job soon.

The mortgage councler knows about the situation and does not work for a bank, he is independent. He says that the bank may call my old employer on the status of my job the day we close, although they supposidly already did as part of the mortgage condition. He also says not to bring it up unless the bank questions it and to close as quickely as possible.

So what would happen, would it just push back the closing date or could it involve me not getting the house. Do they really call your employer a second time? If it does push it back, do you think it would involve a time frame of more than a few weeks? Just looking for second opinions.

m2c · Joined: 03 Aug 2005 Posts: 767

This is not that big a deal. Doesn’t happen all that often but all that needs to be done is verification of the new employment and underwriting at the new income level. Should take, maybe, a day.

On the other hand, if you keep silent and lender does a verbal verification of your now “old” employment, all sorts of questions might open up. The readily understandable but undisclosed situation may make the underwriter to wonder about other “verified items in your file. You likely signed a form saying you would notify the company of any change in employment and you will sign a final 1003 (loan application) at closing stating the facts included therein are true. Yes, there are civil and criminal penalties.

I’d fess up now. No big deal and can be handled quickly.

cheese9988 · Joined: 22 Jun 2008 Posts: 2

Good to know, thanks for the info. Our mortgage guy said if it comes up he would deal with it then. I can ask him why he wouldn't just come out and tell them.

Do you think he would say that because there is extra paperwork involved? He said I had alot of jobs in the past couple of years, but it is because I just moved to NY from NC about 11 months ago.

m2c · Joined: 03 Aug 2005 Posts: 767

Let me post a question in a some what negative fashion. Your LO wants you to participate (potentially) in a deception if not fraud in order to save the LO some paperwork? !!!!

I’m sure you can appreciate that the underwriter might be concerned in employment stability as it pertains to stable future income flow and therefore potential ability to pay. The employment transitions after a relocation isn’t prima facia bad. Look at industry, income levels of newer jobs, length (if any) of unemployment between jobs. You have a big plus with a employment offer in place now prior to leaving your current position. Don’t know all the facets of your application but I suspect this will not be a big deal. If it is, you might appreciate a “second opinion” from the underwriter if it keeps you from jumping into a purchase and debt which might prove to be an albatross a few months from now. Too many home buyers take a myopic view that they “got” to have this house and can be nudged to do things they would not ordinarily consider.

The new employment may well not be a deal killer but, ignoring ethics, the proposal to move up the closing date might not work. I do not do business in New York and am not sure but I think the property must be vacant and turned over on the closing date. Since there are mover to schedule and a need for a residence into which to move, the seller may balk at a different date. Could be totally wrong on the possession issue but it stuck in my mind somehow. Maybe someone from NY will chip in.