Refinance approved-lost job (loan, approval, mortgage refinance, loan)

[Tlcole73]

Hello-we have been approved and are scheduled to close on our mortgage refinance next week. Well yesterday, my husband got let go from his job. They did the VOE's on both of us this past week before we received the final approval letter. We are refinancing with our current lender and our payments will actually be significantly less than we currently pay. Do I need to notify them that he lost his job?

[Niceguy17]

Originally Posted by Tlcole73

Hello-we have been approved and are scheduled to close on our mortgage refinance next week. Well yesterday, my husband got let go from his job. They did the VOE's on both of us this past week before we received the final approval letter. We are refinancing with our current lender and our payments will actually be significantly less than we currently pay. Do I need to notify them that he lost his job?

I wouldn't. Even though the information should make them more likely to want you to refinance, banks don't always work that way. And you need the lower payment.

I know this is probably technically not the correct advice, but this is what I would do.

[WeSoHood]

I would not notify them. You need the lower payment & are close to closing. Simple as that.

If there's any question about the debt to income without his salary, your loan will probably be denied otherwise

[Senior Mortgage Associate]

If you don't notify them, you commit fraud.

You will sign a document at closing that certifies there has been no change in employment.

You signed a document at time of application that you would notify of material changes.

Have your husband find a new job, and then work on closing your refinance.

Do the right thing, and sleep well at night.

[SmartMoney]

Wait a minute!

Will your husband be receiving pay beyond the closing date? Ie, is he getting 4 weeks (or whatever) pay? If so, it's not a lie. While I agree not speaking up is the incorrect thing to do if pay has been terminated, I completely see the logic in keeping it to yourself. With the same bank on the hook, I think you would be hard pressed to find anyone to judge you. And if you do go through with this, keep this to yourselves - friends are few when jealousy could be present.

[SmartMoney]

Originally Posted by Senior Mortgage Associate

If you don't notify them, you commit fraud.

You will sign a document at closing that certifies there has been no change in employment.

You signed a document at time of application that you would notify of material changes.

Have your husband find a new job, and then work on closing your refinance.

Do the right thing, and sleep well at night.

While I agree with you for the most part, if the individual laid off is receiving severance for the next 30 to 90 days, , technically, the termination date may not occur until the pay stops. Technically, there would be no fraud if the separation date is after the closing. While a professional in the field can see the problem, it's a grey area no one would blame the novice.