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Want some advice/thoughts on the following. Here is the scenario:
- We are relocating from NYC to North Carolina.
- My wife and I both make low $100s in our current jobs.
- We currently rent.
- Credit scores both in mid-700s.
- I have been offered new position with offer letter at similar salary.
- We have contract on $500k house w/ 10% down.
We told our loan officer that my wife would continue working at her current job. This is somewhat true - they will let her work remotely for a month or two but then she will have to find a new job in NC. My salary alone probably isn't quite enough to get approved.
So the question: Are we in some jeopardy here? Does she need to absolutely not give notice until we close the loan? It sounds like they may request a verbal verification of employment before we close. Is the fact that her employer is in NJ likely to raise red flags? We are getting the mortgage through a regional bank in NC.
What is typical when two earners move and only has a job lined up? Can you only rely on the one salary for loan qualification?
I think the first question would be: if you can't qualify for the loan if both of you aren't working, will you be able to afford the home when the few months is up and she hasn't found a new job yet?
Homeownership is not cheap, completely different from renting. You might want to find a home that you can afford on one salary if needed, just in case.
If that is not an option for whatever reason and you believe you can afford your home, I would suggest that you make sure she does not give notice until the sale is complete. As for the NY/NC link, the msot they will usually ask for is an explanation letter as to why, but it might be self explanatory since that is where you are coming from.
Yes, you are in jeopardy. The lender is going to verify employment with one question being the likelihood of continued employment. If the employer says this is just temporary and employment will end soon, the lender will not take the income from her job. Next, the lender may ask how she can work in NC for a company in NY? And the lender may even ask the employer that question.
Your best option is to qualify on just your income. Good luck.
fair comments both. agreed in hindsight we could have been more conservative, but as we are now in contract i'm just curious what sorts of roadblocks might be ahead of us. my wife works for a massive fortune 50 company - I'm pretty sure all an underwriter is going to get from them is some comment of "yes, as of today she still works here" and that will be it. i would be very surprised if they (or any employer) would give any kind of forward-looking statement on job stability. that opens them up to all sorts of legal concerns. we're about 90% there just on my salary alone, so we're not concerned about trying to pay the mortgage while she is looking for work (on top of which she works in HR and we are not anticipating that it will be too difficult to find a position).
We pretty much did that 2 years ago. DH was keeping job and going to be working from home in new state. I knew I was getting laid off effective two months after we were going to close on the new house in the new state. In the meantime, from the move to closing to that time frame, I was on vacation and sabbatical time, so technically still employed.
This was a no documentation loan (their decision, nothing we asked for) so they didn't ask for too much, just asked us to write a statement as to what we did for a living and how we were going to continue doing that from home in new state. So...I did have a teeny lie going as I knew I was getting laid off two months later. It worked fine for us, I am sure if they did call to check my employment, my status would have been "employed". Large company so it's not like you are calling the boss, and I was employed at that time.
We are trying to refinance now (on DH's salary alone, which may or may not get approved, as I am still out of work (been looking for the majority of 2009 now)) and I was told that now they do a check on your employment just three days before closing to make sure you are still employed.
We pretty much did that 2 years ago. DH was keeping job and going to be working from home in new state. I knew I was getting laid off effective two months after we were going to close on the new house in the new state. In the meantime, from the move to closing to that time frame, I was on vacation and sabbatical time, so technically still employed.
This was a no documentation loan (their decision, nothing we asked for) so they didn't ask for too much, just asked us to write a statement as to what we did for a living and how we were going to continue doing that from home in new state. So...I did have a teeny lie going as I knew I was getting laid off two months later. It worked fine for us, I am sure if they did call to check my employment, my status would have been "employed". Large company so it's not like you are calling the boss, and I was employed at that time.
We are trying to refinance now (on DH's salary alone, which may or may not get approved, as I am still out of work (been looking for the majority of 2009 now)) and I was told that now they do a check on your employment just three days before closing to make sure you are still employed.
I hope the OP picked up some of the words in this post---------
" We are trying to refinance now"-----" which may or may not get approved"-----------" I am still out of work"--
What good does it do to -- pull one over --in order to get a loan approved and have it come back to bite you after you get the loan ?
^ Yes, I hear you. Again, we are almost there on my salary and we have enough cushion to easily get at least 6 months. Also we aren't moving to North Dakota or Detroit or somewhere. She can find work anywhere from Winston-Salem to Raleigh and she works in HR which is a function that every employer has. Of course there are no guarantees, but we are not concerned that my wife's job search will take that long.
Thanks "Captain Patronizing"! It would be more helpful if you offered some insight on the original question instead of offering unsolicited commentary/advice on how we should run our finances. We (obviously) have a much better handle on the risks and opportunities involved in our situation than you would.
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