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Old 01-29-2013, 12:24 PM
 
Location: Manassas, VA
1,559 posts, read 3,423,911 times
Reputation: 863

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Ok, my husband and I are finishing our house that has been under construction. We are trying to push the GC to get it done before he loses his job in April. If that doesn't happen and he loses his job before getting the mortgage, how should we approach credit card debt, etc. He will still be able to show that he has some income....just not as much as when he's working.

I am going to rely on my husband qualifying for the mortgage since I have my name on our current mortgage, home equity loan, etc. and I think I'd be pretty much maxed out considering I am not making as much $$ as I was last year.

We've been paying out of pocket for the last of the expenses which could cost upwards of another 50k. We have 50k in the bank but obviously I want to save some of that for fixing up our current house and getting it ready to sell when we move.

We need to purchase cabinets. Should I try and get financing and take down my credit instead of his? Should I transfer any credit card debt to myself so that he is free and clear?

Our debt right now is about 15k on the credit cards....but that should be down to 5k within the next two months. We could completely pay it off but I want to make sure we have cash in hand.

So I guess - bottom line....should I be the one taking the hits on the credit? We both have EXCELLENT credit but with carrying a debt load the last month or so....I'm worried about getting the best financing for our mortgage.
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Old 01-29-2013, 06:34 PM
 
3,806 posts, read 8,387,180 times
Reputation: 4948
This feels so 2003, I'm all tingly!

You may be about to commit some form of Bank Fraud. I really think you should consider the ramifications of lying.

Spend every ounce of your energy getting the loan across the finish line before his employment is curtailed. Underwriters will check a few days before closing, to confirm that he still works as described in your application, AND they will recheck credit for new accounts.

Both of you need to grab a hammer and get the loan closed, then do what you need to do to get the cabinets. Add NOTHING to the process that might slow it down.

Good luck.
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Old 01-30-2013, 06:28 AM
 
Location: Manassas, VA
1,559 posts, read 3,423,911 times
Reputation: 863
Oh no, this has nothing to do with committing any kind of fraud. The bank will clearly know that my husband is no longer working. He has two other sources of regular income that will be coming in, just not as much with everything combined which would have made it a cake walk. We haven't even filled out any application. This house is being built in Vermont and we are in Virginia. We are trying to get the GC to get the subs to hurry up but trying from afar...really isn't doing a lot to help the cause. We took a 31 hour road trip, there and back on Friday night to meet with the GC to give him that push. And - we are ordering the cabinets regardless of what he says.

My question is should I be the one taking the hit on any further expenditures or would it be safe for him to take a hit.

We have over 500K in combined retirement assets. A current house market-valued at over 100K more than what we owe on it and 50k currently in the cash. The house under construction will need to have a mortgage on it of about 190k but at its last appraisal was valued at 540k.

I'm not sure what you mean about 'so 2003'.
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Old 01-30-2013, 07:02 AM
 
Location: Wake Forest, NC
835 posts, read 3,764,184 times
Reputation: 649
You need to talk directly to your loan officer. If with all 3 jobs he has a DTI of 20% and with just 2 its 30% no big deal, but if that changes to 35% and 45% may be a huge deal. Also, he most likely needs 2 year history on all secondary employment. Talk to your loan officer especially before you dump any more of your cash into a home you may not be able to buy.
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Old 01-30-2013, 07:20 AM
 
Location: Manassas, VA
1,559 posts, read 3,423,911 times
Reputation: 863
I'm actually not worried about qualifying. I am worried about getting the best rate. His secondary income is pensions so that will not change. We had no problem getting the construction loan even though he was not currently employed. I just want to make sure we keep it that way. The only debt he has is on the credit cards which could technically just be paid off. He does not have any other loans out with the exception of the construction loan. His DTI with the mortgage would be around 20% with just the 2 incomes. I guess I'll take the hit for the financing for the cabinets.
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