My husband lost his job today and we are supposed to close on our house next week.?
My husband just found out that he is laid off from his job today. We ar supposed to close on our house next week should we or can we still sign the papers on the house? Does the bank take a second look at your financial situation right before you close? We have plenty saved up and will have his unemployment to keep us going for a few months until he finds work, which won't be a problem because he works in a high demand career. I also plan on going back to work.
My main question is, will the bank stop us from getting our home, even though we are just waiting to close?
- Anonymous1 decade agoFavorite Answer
I am not going to sugarcoat this, because if I give it to you straight, you’ll hopefully take me seriously.
Do NOT buy this house.
#1 You ‘plan’ on going back to work? So, I take that to mean that you don’t currently have a job, and now, neither does your husband. Unemployment doesn’t count as a steady stream of income, especially from only one person.
#2 The lender can verify/re-verify employment at ANY time. It’s a question of when they find out, not IF they find out your husband lost his job.
#3 Honesty is the best policy. Tell your lender the truth. They will likely deny your loan, but at least that way you can present the denial to the seller, and get back your deposit (if applicable).
#4 You have plenty of $$$ saved up…good. Hang onto it. House prices will likely drop even further, you won’t miss out on any deals.
#5 Even if your husband works in a high demand area, you can’t assume he WILL find work within a few months. If you do assume that, you might be in for a surprise.
Think logically- If you were a lender, would you loan money to people in this situation?
Sometimes a lender will deny you not because they are being buttheads, but because they are trying to save you from making a big mistake; this is one of those times.
best of luck
- golferwhoworksLv 71 decade ago
it will not close no way no how. Every underwriter just before giving a clear to close will check again with a phone call to HR and make sure you are still employed with the firm. They will kill the loan at that minute. Now if he can find a job in the same line of work in the next couple of days he can inform the loan officer and get a new VOE filled out and submit it to the underwriter and then that in it self will be iffy as they will want at least 1 pay stub from the new job showing like income and then they may want 1 months worth at the very worst
If no job no loan and you should get back your earnest money as almost all have a final approval as a caveat in the contracts
- Auntie MameLv 71 decade ago
Don't buy the house! Sure you lose your earnest money by backing out but that is a lot better than having a foreclosure and going bankrupt. Perhaps, the seller might agree to delay the closing until he gets another job. In this market he might even allow you to rent for 6 months or so.
- Lauren FLv 71 decade ago
See if your husband can negotiate with his former employer to use up vacation time, or unpaid leave time, to stay on the active payroll list for another two weeks.
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- David ZLv 71 decade ago
You should not make a bad situation worse by signing a mortgage loan right now.
Tell your lender what has happened immediately. They will likely verify employment day of closing anyway.
There are lots of other houses out there if this one sells to someone else.
- Anonymous1 decade ago
the banks do a final credit,employment check prior to closing, I would not by the house. you should get your money back as it should stipulate in the contract buyer to obtain financing and obviously you can't
- wizjpLv 71 decade ago
They will generally ask you to affirm the information on the loan application is still correct and current; and to swear all the information is accurate as well.
You risk a chance of being found guilty of fraud if things go bad.
Sucks; but I'd tell them now.
- Army♥WifeLv 61 decade ago
most lenders have been known to reaffirm info right before closing, including employment and credit. My friend had her home loan denied at the closing table because they had pulled her credit an hour before closing and it had changed
- Designer~WifeLv 61 decade ago
No guarantees, but at this point, you should be fine to close as far as the banks go.
Whether or not it's a good idea, I can't answer. My question would be: If his career field is in high demand, why is he being laid-off?