Hi, I’m facing an issue with my mortgage and would appreciate some advice. Here’s the situation: I’m about to sign the final deed for my house. Everything is ready except for a few missing documents—the proof that I’ve completed my probation period, the contractor’s all-risk insurance, and a copy of the energy performance certificate for the new house. The problem is that my promise of sale expires at the end of January. However, I lost my previous job in December. Fortunately, I found a new job right away, but my income has decreased by €300 per month compared to my previous position. All the missing documents should be ready by next week. Now, I’m unsure whether I should inform the bank about my job change, which might risk the mortgage being canceled, or if I should take the chance and act as though I’m still employed at my previous job. Any advice on what to do would be greatly appreciated.
Inform your lender immediately, so they can direct you on what to do and what they need. If I can help further, let me know. TY Matt
Ray said:
Inform your lender immediately, so they can direct you on what to do and what they need. If I can help further, let me know. TY Matt
I am scared that the whole process will be canceled and I will lose the opportunity to get the house.
@Skyler
Committing mortgage fraud is not the solution to your fear of losing the opportunity. Talk to your lender. If they were asking for proof you weren’t still on probation at your previous job you must not have been there very long. You need to be ready with an explanation for the job change.
It’s only going to be worse if you don’t tell them now, there will be a verbal verification of employment right before you sign. They’ll find out then that you don’t have your old job.
Hollis said:
It’s only going to be worse if you don’t tell them now, there will be a verbal verification of employment right before you sign. They’ll find out then that you don’t have your old job.
This 100%. They will not fund your loan until they verify your employment and if you switched jobs at a lower pay, you could no longer qualify for the loan. It’s much easier for the lender to be proactive and figure out a solution once you get the proper documents to your lender ahead of time than trying to fix it after the fact. For example, adding a co-signer, paying off debt, buying down the rate, etc. There is 0% chance this is ‘missed’, there are entire departments whose sole job is vetting these loans to the last minute (including even credit monitoring to see if you are charging up your credit cards) until funding.
I am unsure what the laws are where you reside, but in the US this would be Mortgage Fraud.
Grier said:
I am unsure what the laws are where you reside, but in the US this would be Mortgage Fraud.
The loan was already approved before, this is to sign on the mortgage and actually paid the actual homeowner, I just want the advice on what to do next in this situation.
@Skyler
If the loan was approved based on your previous income, it may not be approved with your new lower income. You have 2 options. Option 1 - tell the truth. This could end up with the loan being cancelled. Option 2 - be quiet and hope they don’t find out. If they find out, the penalties could differ depending on where you are. Where I live, you could face up to 6 years in prison and the full amount of the loan would be due. Again, it is dependent on your location and how much you are willing to risk.
@Grier
It’s still mortgage fraud. At your closing, you will have to sign a final application, which includes stating your current employment. Plus, lenders do a verbal verification of employment very close to the closing date so they’ll probably find out anyway. Hopefully, the change in income wasn’t significant enough to push your debt to income too high—that’s your main concern in this situation.
@Teal
My income before allowed me to borrow 240k. Now with my new income only 200k.
Skyler said:
@Teal
My income before allowed me to borrow 240k. Now with my new income only 200k.
And how much are you trying to borrow?
Skyler said:
@Teal
My income before allowed me to borrow 240k. Now with my new income only 200k.
And how much are you trying to borrow?
240k but the house is only 154k I would need the rest to fix it but could do other way to have it fixed