Hope to Buy and Finance a Home?
Have you Experienced Job Loss, Furloughs, Unemployment, Hours & Wage Reductions?
No one needs to tell you, the pandemic's toll has been severe ...
It has affected us way beyond just our physical and mental health. It has reached into and touched nearly every facet of our lives also ... education, childcare, finances, and employment among them.
Prospective homebuyers also call and share their experiences, at the same time peppering me with a host of questions. The stories I hear are varied and many times, gut-wrenching.
The stories related often surround changes that have occurred in employment. Callers want to know, "Will the changes they've experienced affect them or their chances of securing a mortgage?"
Most commonly questioning revolves around these scenarios:
- A job "gap" occurring
- A job loss
- A reduction in pay or hours of employment
- A change in jobs/employment
But typically in most situations, I'm going to need far more information (and possibly records and documentation) in order to provide them any solid reliable answers. If moving forward with an application is a viable option for them, a mortgage underwriter will need it too.
Following is some of the info a Mortgage Underwriter will ask the applicant to address:
Should any of these situations arise after a mortgage application has already been taken, it will likely result in, at minimum, a temporary delay in mortgage processing. The applicant will need to supply Mortgage Underwriting with a thorough explanation (along with supporting documentation) of their employment situation.
A determination will then be made regarding the mortgage application. Whether it will continue forward in pursuit of loan approval or be canceled.
- Is the situation temporary?
- Has the applicant returned to work?
- If so, how long have they been back?
- Is the applicant making the same rate/salary of pay as previously?
- Is the applicant working the same number of hours?
- Did the applicant return to their prior position or does the return to work mean a new position?
- If the applicant has returned to work at a new job, is it in the same field?
- How stable is the new employment?
- If the gap in employment was because of medical need, will documentation be required?
- Possibly More
As you can see, depending on the applicant's employment scenario, underwriting requests can be quite varied. But applicants must be aware that, if in pursuit of loan approval, an underwriter is going to require that there is proof of stability in employment, as well as wages, etc.
Getting the proper information and guidance as to how to move forward through each step of mortgage processing will be crucial during this time. Success will depend upon it.
Keep your goal in mind. Use it as your "carrot". The rewards of obtaining a low interest rate and finding the right home are certainly worth the phone call or inquiry.
So what's the first step you should take should you find yourself in one of these employment situations?
As always, if you haven't been pre-approved, do so. If you've already made application, contact your lender and inform them of your situation. Then make sure to stay in close contact with them. Respond to their requests for info and documentation quickly and thoroughly.
Always remember:
- Not every buyer's/borrower's situation is the same. So don't listen to or compare yourself with any other buyer/borrower.
- Not all Underwriters interpret guidelines the same way. Don't give up hope. You and your situation are unique. Your finances are specific to you.
While it's true that the road to loan approval may be a bit more demanding during these times, hopeful homebuying applicants should not assume they cannot buy their dream home. Instead, they should talk to a lender as soon as possible when their employment changes occur.
When you have suffered a job loss, job gap, furlough or other employment change ... it's important to find and work with an experienced lender. They'll help you discover the facts as they pertain to you and help you achieve your goals more quickly and easily.
Are you hoping to Buy, Refinance or purchase an Investment Property in New Lenox, Will County, or elsewhere in the Chicagoland area?
Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
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, Kane County, Grundy County,
the City of Chicago, Cook County, and elsewhere within IL & WI.
Referrals are Appreciated and Welcomed
