In Mortgage Financing:
It's Not Simply about Being Employed
I find that a post that recounts real transactions and actions regarding my past clients' experiences seem to resonate best. Readers can easily put themselves in "someone else's shoes" and learn from these transpired actions and experiences.
Today I have such a post. It concerns employment ...
During the recent financial downturn, the topic of employment was a huge focus of the media. Everywhere you turned you saw articles, videos, seminars, newscasts, and statistics addressing the topic, the importance of getting employed, the importance of staying employed. Employment, or the lack of it, touched upon every facet of life and business (and still does).
But throughout the time when you're Buying a Home or Refinance, the issue of employment becomes an even larger and broader issue. It's no longer about simply having a job or being employed.
Confused? Let me explain ...
A past client of mine was less than 1 week away from their Closing. As is typical in current mortgage financing, an new, additional credit and employment check/report was run prior to the Closing taking place.
What does this new report reveal?? One of my borrowers has changed jobs! (They had not informed me ... even though they had been told to do so and provided a list of those things "NOT to do" during Mortgage Processing).
Why is this a problem?
It's not enough to "be employed" when it comes to Mortgage Financing. As with the Mortgage Pre-Qualification and Mortgage Application ... consistency and continuity of employment and proof of such remains vitally important up to and through Closing.
- How long you've been employed
- In what field or position you've been employed during that time
- How much you're paid
- How long you've been paid that amount
- How your paid (regularity, commission, etc.)
- Where you've been employed
I can't overstate the importance of this matter. Disrupt any of these things and big problems can result.
What resulted from my Borrower's change of employment? Underwriting would not hand down
their opinion of my client's employment change.
The new job had certainly thrown a wrench into the Mortgage Processing. As a result, the Closing, originally on track to close on time, was in jeopardy.
When this occurs: At minimum, these issues will cause a whole lot of stress for everyone in the transaction.
At worst: There could be a delay (or worse) in the Mortgage Closing. And that could have serious ramifications for the success of the transaction.
In today's mortgage financing: It's not simply about being employed ...
Learn from my client's mistake. Talk to me (or your own Lender) well in advance of beginning your home search or seeking a refinance. And heed ALL the advice you're provided throughout your entire Mortgage Processing, from beginning to end.
* Hoping to Buy a Home or Refinance in New Lenox, Will County, or elsewhere in the greater Chicagoland area. I'll put my 40+ years of mortgage experience, knowledge, and expertise hard to work on your behalf.I'm easily found at:
Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI #216987
American Portfolio Mortgage Corp.
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
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