Buying a House? Don’t Quit Your Job (Even If You Signed Papers)

While signing loan documents in the company break room with the notary, the homebuyer got on the loud speaker and announced, “I now quit this job!”

A woman texted her employer and said, “I don’t wanna work here anymore.”

Both of these people suddenly lost their loans–and their dream of home ownership!

Yesterday, a group of mortgage brokers were talking about things that had gone wrong at the last minute. Both of these stories were part of the group conversation. More chimed in with similar stories.

Evidently, lots of homebuyers don’t like their jobs and  can’t wait to quit.

If you quit your job, your loan will be stopped.

Even if you have signed loan documents, the lender can still refuse to fund your mortgage. Signing the contract does not force the lender to go through with the loan.

The lender agreed to grant the loan based on your employment and income. When you change that, you have changed your agreement. The deal is off!

You can’t quit and start your own business.

If you’ve been a house painter for 20 years and now you want to start your own painting business, you will have to wait two full years before you can get a mortgage. The time requirement for being self-employment is 24 months, even if it is in the same line of business.

What happens if you get laid off or fired?

If you lose your job, then your loan goes on hold until you can regain employment and provide an offer letter and one paystub to show you’re back at work (and what your new income is). Likewise, if you quit and now regret it, scramble to get another job fast so you can save your loan.

The End of the Story

In the case of the woman who texted her boss that she quit, the loan officer tried calling the boss to persuade him to take her back. Unfortunately, the employee’s apology started off by calling her boss a dirty name, so that didn’t work out.

One would-be homebuyer asked his loan officer: “Don’t you have a loan program for people (who aren’t working) like me?”

“Yes,” she replied, “it’s called renting.”

As always, thanks for reading and passing on information to good folks who don’t know the rules of closing on a mortgage loan.

Many thanks to Dreamingfrees @ Pixabay for the free image I used above.

5 thoughts on “Buying a House? Don’t Quit Your Job (Even If You Signed Papers)

  1. I had no idea that a person’s loan could be stopped if they quit their job. Both my sister and my brother are thinking about starting to search for homes. I’ll pass this tip onto them so they don’t ruin their chances of getting a new house.

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