Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Basically the situation is that I need to be working at my current job in order to get a mortgage. Since the property I want a mortgage for is in a different city where I want to move (without getting a job first), will they still approve it if they don't know I plan to quit my current job? Will they ask how I am going to continue working at my current job if I am moving? Will they require proof of my answer?
Additional information:
I have been working as an engineer in City A for 2.5 years. I want to buy a house in City B and move there, which is six hours from City A. There are three reasons why I want to buy a house there instead of renting at first. 1) Rent prices are ~double what I will be paying in mortgage/taxes/insurance. 2) My family lives there so I know I will be there a long time. 3) Most relevantly: In order to move I will have to quit my job. However, if I quit my job I doubt I will be able to get a mortgage. I do NOT want to get a new job in City B. Instead, I plan on starting my business there (I have allocated money for this and costs are minimal). I have enough money saved to pay my potential mortgage and living expenses for two to three years assuming I don't make a penny during that time. I am in my late twenties and have no one to support. So basically the situation is that I need to be working at my current job in order to get a mortgage. Since the property I want a mortgage for is in a different city where I want to move, will they still approve it?
It depends on how much you make and put down. You would be withholding employment information from the lender which may be considered fraud.
And people wonder why it is so hard to get a loan now a day.
I could easily qualify for the loan based on the price, income, and how much I can put down, if it was located where I live now, so I don't think that is a factor in this situation. Obviously I don't want to commit fraud, but in the past when I got a mortgage I don't recall the lender asking about future employment plans.
I could easily qualify for the loan based on the price, income, and how much I can put down, if it was located where I live now, so I don't think that is a factor in this situation. Obviously I don't want to commit fraud, but in the past when I got a mortgage I don't recall the lender asking about future employment plans.
It's a different world now, with occupancy fraud being the top fraud the CFPB is taking on. IF you buy a home in City B and conveniently, within 6 months, hand in your resignation ( not get laid off or fired) it will be assumed you always planned to purchase and circumvent the requirement to meet the "ability to repay" component of the Dodd-Frank legislation when buying in City B (because you would not qualify then). You could do the loan as a second home, but that will require you to dig your hole even deeper. Buying a 2nd home when not owning a primary requires explanations of why you don't own in City A and that have you writing outright lies because the gig would be up after your resignation and change of address. See, occupancy is based on intent and it's a short line between closing and resignation.
That said, you may not get caught unless you defaulted on your loan, but we are in a different world with that microscope by an independent agency (without oversight - think IRS). I guess it all depends on how much you like looking over your shoulder.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
