Losing Job Before Closing

by Francis
(Frederick, MD, USA)

My wife and I are buying a house. We went through all the mortgage processes successfully and the date for closing and settlement is 12 days away. Unfortunately my wife is losing her job just 5 days before closing.

What will happen at the closing table? Should we inform the lender (loan officer) now? We are really upset!!

=====ANSWER=====

Hi Francis,

I can understand how you would be upset.

If you are using your wife's income to qualify for the loan, you will need to let the loan officer know this right away.

They would likely discover this anyway since it is not uncommon for lenders to do a VOE (Verification of Employment) on the people included on the loan application just before closing.

Sadly this may cause you to disqualify for the loan and the deal could fall through.

Sorry to be a bearer of bad news but this cannot be hidden nor would you want to since it would be hard to afford the home anyway.

I wish you the best.

Kind Regards,

Jeff Ragan