To make a long story short. My wife and I recently applied for an FHA loan for our first house. I am currently working two jobs which I listed on my loan application. Yesterday my boss comes in my office and with the dreaded "Lets talk" line. Of course I find out that my company is down sizing and that I'm being let go. I let my boss know that I'm trying to close on a house and that If he can tell HR to say that I still work there when the bank calls until the loan is finalized. He agreed, but I have a feeling that HR is going to tell the bank that I was let go regardless of what my boss said. I already have another job lined up, but I don't want to go through the hassle of waiting another 2-3 months and resubmit the loan because I will lose out on our dream house. What should I do in this situation?
you are buying a house based on having two jobs? don't you think it's a lot of stress you're taking on? don't take it the wrong way but shouldn't you get a house you can afford?
Tell them the truth. If your loan is denied it just is. I think you are making more worry for yourself than it has to be. Also if they are basing your loan on the fact that you will carry two jobs for the duration of the loan I think that in itself says volumes. Not only about the loan company but also about how much debt you are actually getting yourself into. working all the time for an expensive house that is probably not in your budget probably isn't the smartest move you can make. Add to the fact that you are in (it seems) an industry were you could be let go at any time. Have you really thought this through??????
We can afford the house and my second job is part time (1-2 hours) a day for a little extra cash. I can already start my new job next week, but the problem is that I listed the job I just lost as my main job on the loan application. I don't want to risk losing the house because I have to wait 2-3 more months to get enough pay stubs together to reapply for the loan.
The part time job is listed as supplemental income. The loan amount is based on what my wife and I make at our main jobs.
i wouldnt lie...not worth it. maybe they never notice, but if you did get caught THE CONSEQUENCES WILL NEVER BE THE SAME. if you already qualified and the loan officer has already put in time w/ yall i cant imagine they would just drop you like that. they probably want to make this loan w/ u as bad as u want to get it. just be honest and let them know you already have another job lined up. im sure they will try to work w/ you. i dont know though - maybe since you already qualified for the loan it doesnt matter where you are at now and you dont need to tell them anything???
Thanks for the advice. I spoke with my Loan officer and she told me as long as my new job is in the same field that I should be fine.
As a realtor, I say walk away. Getting a loan based on two jobs is risky. Keep in mind many lenders do not care if you can't pay off the full loan. Their bottom line is to make sure that you can pay enough that if you get foreclosed on, they can make a significant profit selling the house. If you buy a $100,000 house with a 90ltv for over 30yrs, you are going to pay over $200,000 easy. If you only pay half of that, that means the bank got back its $90,000 plus another $10,000. They can then flip your house for a quick $70,000, which is $80,000 profit. That is why foreclosed houses are generally cheap, money was made on the interest. I am speaking in general terms obviously, just giving an example.
We wanted to sell our home, but those 2)#$^#)*$^ foreclosures brought our house price to compete for about 25% lower than we should sell. We decided to wait. I fear that if this dude DJNICK is working two jobs, he will walk on completing a house purchase... and bring other peeps' houses values down. Your loan officer just wants to make that dough and doesn't care that you'll stress to get a bigger house (and huge loan, mind you) than one you CAN afford. Good luck with that, sir. Ha... women. Why do people shoot for the STARS right away? Shoot for the moon... if you miss, you'll end up in a star.
If I were you, I'd take losing my job as a sign to pull in my expenses, not take out a loan on a house...
Lending guidelines have become extremely stringent. Lenders don't just care about getting a loan, to foreclose on a home in Texas can take anywhere from 12-24 months. A good deal of the time when lenders get back a home that's been foreclosed on people have stripped the house completely bare and taken everything leaving the bank to have to remodel the inside completely. Depending on who you are getting your loan through your lender has to buy back your loan if it occurs in the 1st year and they are on the hook for it. When you talk to your lender about losing your job, they will simply take what you were making out of the equation and your DTI will determine if you still qualify.
Insurance pays for that and then go after the seller. You can only take chattels. Also nothing I said has anything to do with the first year. What I described is still in practice. Most restrictions are on people with bad credit, sub-prime loans and managing debt-to-income ratio.
I'd normally feel sorry for people who get foreclosed on, but that's total deadbeat behavior right there.
Be honest with your lender as they want your loan to go through if theres a way to do it they will find it. Unless your a few days away from closing it's usually required to show your last few paychecks to show employment at the time of closing. So even even if HR says your still there but theres no paystub to show than its all pretty moot.. Also not sure if your LO has seen your docs or gave you a prequal based on the info given. But if you need the 2nd job to get the approval I believe you have to have a work history of working 2 jobs for atleast 2 years and if its cash that makes it more dicey.... congrats on the house
The second job is listed as supplemental income and not as a basis for approval. I was told the lender would call the day before the closing is scheduled to verify employment.
