Buying a home can be a very exciting experience. But the process can also be stressful. Once you are under contract on a home, and it seems as if your new home loan will close without any issues, you can breathe a sigh of relief. However, there are sometimes glitches that can occur between the time you go under contract on a house and the day of the closing. Although it’s uncommon, there are sometimes situations in which prospective homebuyers lose their job at the same time they are trying to purchase a home.
If you are under contract on a home and you recently learned that you lost your job, don’t panic. If you lost your job, the situation does not automatically mean your loan will fall through. Many factors will come in to play if you lost your job while trying to close a new home loan. The best thing you can do is let your mortgage broker know about your job loss as soon as possible. Even though you might be inclined to keep the information a secret, it’s best to be open and honest with your lender at all times.
Did You Lose Your Job?
Tell Your Mortgage Lender about Your Situation. You might want to keep your job loss quiet so that your mortgage will close. However, most mortgage lenders verify employment at the beginning of the loan application process and also at the end. The last thing you want is for your mortgage lender to uncover your job loss before you have a chance to tell him or her.
If You Lost Your Job, A Home Purchase Might Not Make Sense. Even though you might have your heart set on purchasing a specific home, if you lost your job, it might not be financially possible for you to afford the home. Purchasing a home while unemployed can be an extreme financial burden. The stress involved with being forced to find employment so you can make mortgage payments might prove to be too difficult for you – and the last thing you want is to face a foreclosure. As disappointing as it might be, you might want to back out of the deal and wait until secure employment is found.
Talk With Your Mortgage Broker and Ask for Advice. Hopefully you are working with an experienced and compassionate mortgage broker. Experienced mortgage brokers have undoubtedly dealt with clients over the years who have lost their job during the home buying process. Your mortgage broker should be able to give you practical advice and guidance on how to handle your situation. Handling a job loss when you are under contract on the purchase of a home is stressful, and helpful advice from a trustworthy and honest mortgage broker can make all the difference in your decision on how to move forward.