Home Purchase Question | TigerDroppings.com

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bwm14
Member since Sep 2010
108 posts

Home Purchase Question


My wife and I are looking to close on a new house soon, but there is a rumor that there will possibly be some layoffs within her company that would be announced before our closing date.

The payments are not an issue for a number of reasons, but is there a possible issue with closing if there is an announced layoff when the underwriter does the employment verification?

Will the underwriter be informed of this future layoff, or if we close before the layoff actually happens would we be ok?







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Tigah in the ATL
LSU Fan
Atlanta
Member since Feb 2005
23817 posts

re: Home Purchase Question


A better question is why you're buying a house when your wife is about to be laid off.





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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
7966 posts
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re: Home Purchase Question


As long as you close while your wife is still on the payroll you should be fine. They won't say something like, "Yeah she works here but not for long!" They'll simply verify that she works there.

If her income is not necessary for the loan, why not just leave her income out?



This post was edited on 5/2 at 6:55 am


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10500 posts

re: Home Purchase Question


quote:

As long as you close while your wife is still on the payroll you should be fine. They won't say something like, "Yeah she works here but not for long!" They'll simply verify that she works there.


Not necessarily. "Probability of continued employment" is also a question that is asked. If the loan is delayed at all they may also ask for current pay stubs and she may not have them to give.






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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
7966 posts
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re: Home Purchase Question


quote:

If the loan is delayed at all they may also ask for current pay stubs and she may not have them to give.


That makes sense. I was thinking about the actual call to verify employment. I can't imagine that an employer would disclose that an employer is about to get axed.

I'm wondering why the the OP just doesn't exclude her income since he can afford the house without it.






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Cold Cous Cous
LSU Fan
TD OG
Member since Oct 2003
13374 posts

re: Home Purchase Question


If your income alone will allow you to get the loan, you don't even have to include her employment info. The only reason to include her would be if her credit score is way above yours.





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bwm14
Member since Sep 2010
108 posts

re: Home Purchase Question


I'm actually excluded from the loan because I started my own business and showed a loss last year. Since the beginning of the year started, I have procured clients which will swing the pendulum the opposite way, but won't be able to be included on the loan.

For the poster who asked why we are buying when she might lose her job, see above answer. We also already own another property which is an income producing property but has been so for less than two years, so we are getting dinged on what we can purchase because of that as well.

We are financially secure but leveraged out a bit in the eyes of a bank because of some of the things we are trying to accomplish.







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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
7966 posts
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re: Home Purchase Question


quote:

I'm actually excluded from the loan because I started my own business and showed a loss last year.


OK gotcha, yeah that's a tough spot to be in when trying to buy a home.

Any chance you could wait until your wife has a clearer understanding of what's coming (or until she finds another job). Not sure what to do here but someone will chime in with a good idea.






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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1911 posts

re: Home Purchase Question


the lender is going to verify employment twice once at the begining of the loan process and once right before you close(usually the day before closing) keep your fingers crossed the layoff has not been anounced before you close.





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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
7966 posts
 Online 

re: Home Purchase Question


Just occurred to me but kind of risky. If you have a lot of equity in the other property, you could take out a second against the other property, approach a private money lender for the the rest and refi out of that mess once you are showing a profit or your wife's situation stabilizes.





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