Borrowers don’t know, what they don’t know.
A few times, it is needed to be said to borrowers – don’t quit your job before funding. Most clients, who become borrowers, know that they need a job to make sure they can pay their mortgage balance. Ronaldo had a great job, but little to our knowledge always wanted to be in another vocation – self-employment coin collector.
Lenders approve applications based on what is current and the reasonability that it will continue.
When Ronaldo was approved it was approved with verified income. All borrower types require at least some type of income proof. If you do not have this, then a Licensed Mortgage Broker/Agent will require payments to be held back to suffice the loan. Ronaldo’s income was verified by the lender by way of a phone call. They will verbally verify this income with the person who wrote the letter. There are quite a few lenders that do not perform this verbal verification, but they are few and far between.
Let’s not jump the gun during your mortgage application for funding
When the lender called on Ronaldo’s job, they were dismayed to be disclosed that he had quit his job five days prior to funding. Consequently, this vocation is what go him approved in the first place. As such, the lender pulled the loan and Ronaldo had to close with a private loan. This cost Ronaldo more in interest and fees had to be applied. He still funded his mortgage but now needed an exit strategy due to the Mortgage he obtained.
Always discuss your future plans with a Licensed Mortgage Broker/Agent
It always helps to chat about your future plans. There is reasonability when it comes to quitting your job. Just because you took a 5-year fixed does not mean you CANNOT change, or quit your job. The main aspect here to understand is the borrower’s job permits the mortgage to be approved. Without this job being in place until the funding date you risk being declined by the current approver.
