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So we are applying for our first mortgage. We started the process over a month ago and it is now in underwriting. The Loan Specialist we are dealing with said he believes we will get the pre-approval.
Are there any specifics we need to watch out for or be aware of?
I am currently Active Duty military and will be getting out this summer/fall and we will be moving back to North Idaho, where we are applying for the loan. One thing I thought was odd was when I called this bank the lady I spoke with said they can not do a home loan for us because I will be getting out and switching jobs and until I have been at my new job she refused to even start the process.
Well I just went online and started it myself and we got this new guy who has been very helpful. The subject of me leaving the Military this summer has just never came up. Is that an actual issue if it were to come up? I do not plan on leaving this job without my next job already fully lined up, if I need to I will extend a few months until my new job opens up.
I would say yes, you are loosing your job and they (the bank) can not be for sure you will have the income to make the payments after you get out. Maybe a letter from you new employer with your starting date and possibly salary would help. I would just not tell them, but if they ask you have to tell them. Me when I got out the the military I made sure I had a job first then looked for a place to live, no use in working 2 hours away from your house. but it looks like you got thing covers so good luck.
So we are applying for our first mortgage. We started the process over a month ago and it is now in underwriting. The Loan Specialist we are dealing with said he believes we will get the pre-approval.
Are there any specifics we need to watch out for or be aware of?
I am currently Active Duty military and will be getting out this summer/fall and we will be moving back to North Idaho, where we are applying for the loan. One thing I thought was odd was when I called this bank the lady I spoke with said they can not do a home loan for us because I will be getting out and switching jobs and until I have been at my new job she refused to even start the process.
Well I just went online and started it myself and we got this new guy who has been very helpful. The subject of me leaving the Military this summer has just never came up. Is that an actual issue if it were to come up? I do not plan on leaving this job without my next job already fully lined up, if I need to I will extend a few months until my new job opens up.
Any input would be appreciated.
When are you trying to close on this loan? They will verify income right around the closing date, so if you're between jobs or JUST started a new job, it's going to be an issue.
Yes it's an issue. And when you change industries, it's an issue. Going from Active Military to a "regular" job might get an exception waived by the underwriter, but for the most part, it's an issue. For you to not bring it up could be considered loan fraud. They will verify employment up to the day of closing. At closing, you will sign a piece of paper that states everything on your loan application is still true and correct. Are you able to sign this form without wondering what penalties might happen if you lied?
I am not between jobs currently. I am actively employed still and won't be leaving until i have my other job fully lined up, which will be long after we close on this loan.
We are getting pre-approved now so once we start to hear more about my job we can more seriously look at houses and put in an offer in if we so choose. We will know more about my job come April/May, but we are not planning buying a house or leaving this job until that job is lined up.
To Falconhead:
I am not lieing I am currently employed and will NOT be unemployed at any point. I am sorry if it came across as I am already out without a job but that is not the case. I can ethically sign a paper stating I am employed by the Military at this time because I am still employed. I can not tell them I am leaving here for such and such place of employment because that is not fully lined up yet so I am not going to through in any doubt.
If the job in North Idaho doesn't work out we have another lined up in another part of the state that we can take and then we will either use the pre-approval we have for that area or go to another bank/credit union in that part of the state.
Bottom line is when a loan is underwritten they are qualifying you based on your current income and job position. If you change jobs and begin a new job during that process, you have to requalify on the new credentials, then you open a up a whole new can of worms because now you have a recent job change, which if you are using a VA loan wont be a problem but you will still have to wait until you can prove 30 days of income meaning you have to collect two paychecks to start the process again.
My suggestion is stay employed with the military until you close on your home then make the transition to your new job or stop the process now and pick up again when you have settled into your new job.
The bank is not looking for you just to employed but in stable verifiable job that the income can be proven.
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