Loan Condition: Employer to ensure employment/income continuity after moveafter move

[youngins]

Originally Posted by TimtheGuy

You may be able to salvage the deal.

One of the pitfalls of the lending falling through is it invalidates the contract. Therefore, it gives the parties to the transaction a second bite at the negotiation apple.

I originally had $4000 is seller credit towards closing costs. In five weeks, my credit score went up and DTI went down enough to qualify for a $2500 state grant towards down payment.

Since so much time was held up by QLMS combined with the fact I am now receiving grant money, the seller reduced their willingness to contribute down to $3000. Also, the seller has agreed to a pre-occupancy agreement good for the sooner of 30 days or closing. A pre-requisite was the seller wanted a commitment from the lender.

So, I can move into the house as a tenant.

[youngins]

Made it across the finish line calmly, with huge respect for the process, and maybe a bit wiser...

Along with the $2500 in down payment assistance, I received a owners policy and waiting for approval on a mortgage credit certificate.

[SmartMoney]

Excellent, glad to hear it. Packaging a mortgage loan for an underwriter is definitely an art. Appreciate someone that is detailed. You will have fewer last minute surprises.

[Km100]

The letter requirement make no sense. Employees can quit work or the employer can fire an employee any time. Knowing this, why are the lenders asking for this non-binding letter, an unnecessary burden put on the employee and the manager?

[SmartMoney]

This is more pertinent in 2022 than in 2015, when this thread was created.

The lender is demonstrating due diligence regarding occupancy of the property that they are likely providing an owner occupied rate. If the loan is sold, a buyback could be enforced at a great loss to the lender. If the company has not sanctioned remote pay, then either the income should not be counted or the occupancy must be changed to 2nd home or investor, which carries higher rates and tougher qualifications.

If buyers want the loan, there are certain things they just need to provide.