{"id":6134,"date":"2024-11-22T08:10:59","date_gmt":"2024-11-22T13:10:59","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6134"},"modified":"2024-11-22T08:11:01","modified_gmt":"2024-11-22T13:11:01","slug":"bought-a-home-got-laid-off-options-for-homeowners-facing-financial-hardship","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/bought-a-home-got-laid-off-options-for-homeowners-facing-financial-hardship\/","title":{"rendered":"Bought a Home, Got Laid Off: Options for Homeowners Facing Financial Hardship"},"content":{"rendered":"\n
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It\u2019s possible to receive a final approval for your mortgage, make it through closing day, get your deed, and then\u2026 get laid off.<\/p>\n\n\n\n

It\u2019s also possible to have an unexpected employment change before<\/em> you close.<\/p>\n\n\n\n

When calamity strikes the innocent borrower, what\u2019s next? What steps are best taken to make the path ahead bearable?<\/p>\n\n\n\n

Let\u2019s go through the possibilities.<\/p>\n\n\n\n\n\n\n\n

What Could Possibly Go Wrong? Be Prepared<\/h2>\n\n\n\n

You and your lender check in with your workplace in the weeks leading up to closing. A lender needs to know all is well with your expected mortgage repayments. All seems fine. Your job is safe; you\u2019re ready to close.<\/p>\n\n\n\n

But you also know a medical emergency or some other fundamental change in your situation could occur any time before you have your deed in hand.<\/p>\n\n\n\n

This is exactly why your mortgage specialist doesn\u2019t want you to exhaust all your savings when buying a home\u2014even if you want to. If you have savings to tide you over for six months or more, then your lender is assured of your financial strength for some time. So, lenders expect you to hold financial reserves to cover six months\u2019 worth of mortgage, interest, tax, and insurance payments, and normal living expenses.<\/p>\n\n\n\n

But if you lose your regular income on the runup to closing, your mortgage could  be delayed or even derailed. So while it\u2019s good to approach your home purchase with confidence, it\u2019s also good to game out the unexpected.<\/p>\n\n\n\n

Look out for any liens on the home you\u2019ll buy, especially past-due <\/strong><\/em>property taxes<\/em><\/strong><\/a>, that might need resolving on closing day. Those are frequently unexpected bills that can take a bite out of your savings when you close.<\/strong><\/em><\/p>\n\n\n\n

How to Deal With a Job Loss or Change When Trying to Close on a Home<\/h2>\n\n\n\n
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You might need to change jobs when you\u2019re in the process of buying a home. But try to wait until after closing. Changes in your levels or sources of income can put your approval in jeopardy.<\/p>\n\n\n\n

If you\u2019ve been offered a promotion, or a similar job but with higher pay, you should be fine. Just be sure to talk this through with your mortgage consultant before accepting the change. Your lender will have different requirements for employment changes effective before the closing date, or after it.  <\/p>\n\n\n\n

If you\u2019re changing lines of work, that\u2019s going to present an issue. Lenders have to be assured that your employment shows continuity.<\/p>\n\n\n\n

Same goes for accepting a pay cut. That changes your financial profile. Your mortgage approval hinges on the lender\u2019s understanding that you have a stable level of income \u2014 up until closing day, and beyond.   <\/p>\n\n\n\n

If things change, the lender might agree to pause your application. In any case, tell your mortgage consultant what\u2019s going on. You\u2019ll want to avoid any appearance of deception on your part.<\/p>\n\n\n\n

The lender will likely find out soon anyway, because:<\/p>\n\n\n\n