In Mortgage Financing: It’s Not Simply about Being Employed

I try to keep track and analyze those blog posts that receive the most attention and get the most comments.  What I learn from doing this, is that posts that recount actual transactions and actions that have transpired within a client’s mortgage process seem to educate best and hit a chord most often.  My readers can obviously put themselves in “someone else’s shoes” easily and learn from their actions and experiences.Getting a mortgage is not just about employment

Well, today I have another such post.  It concerns employment … and I’m hoping it provides a valuable lesson to all those that read it.

During the recent financial downturn, the topic of employment was a huge focus of the media.  Everywhere you turned you saw articles, videos, seminars, newscasts, and statistics addressing the topic, the importance of getting employed, the importance of staying employed.  Employment, or the lack of employment, touched upon every facet of life and business (and still does).

But when you’re hoping to Buy a Home or Refinance, the issue of employment becomes an even larger and broader issue.  It’s no longer about simply having a job.  Let me explain …

One of my current clients is less than 1 week away from their Closing.  As is typical in current mortgage financing, another credit and employment check/report was run prior to their Closing taking place.  Lo and Behold, what does this new report reveal??  The wife has changed jobs!  (Even though she had been provided the list of those things “NOT to do”  during Mortgage Processing).

Gene’s Alert:  It’s not enough to “just be employed” when it comes to Mortgage Financing.  As with most facets of Mortgage Pre-Qualification, Mortgage Application, and Closing … consistency and continuity of employment and proof of such is vitally important.   
  

  •      How long you’ve been employed
  •      In what field or position you’ve been employed during that time  
  •      How much you’re paid
  •      How long you’ve been paid that amount
  •      How your paid (regularity, commission, etc.)
  •      Where you’ve been employed

They all matter.  I can’t repeat this list often enough or overstate the importance.  Disrupt any of these things and big problems can result.

Buying a home in Los Angeles, how to prepare for a mortgageAs of this writing, Underwriting has not handed down their opinion of my client’s employment change.  The wife’s new job has certainly thrown a wrench into their Mortgage Processing.  As a result, their Closing, originally set for the end of this week, is in jeopardy.

At minimum, there will be a few very anxiety-ridden hours for all of us while we await an answer from Underwriting.  At worst, there could be a delay in Mortgage Closing.  And that could have serious ramifications for the success of this transaction and for my client.  I’m working hard to see that it does not.

     In Mortgage Financing:  It’s Not Simply about Being Employed.  I hope by relating this story, I save someone else from suffering through the same stress or fate.  Please … take heed and learn from the mistake of my client.  Talk to me, or your own Mortgage Lender, well in advance of beginning your home search or seeking new mortgage financing.  And then heed the advice you’re given throughout your Mortgage Processing until you are successfully Closed.

Gene Mundt

I am a 30+ year veteran of the mortgage/banking industry, with extensive knowledge and experience in mortgage and credit services, management, and real estate appraising. I am also an IL Certified Financial Planner. This unique combination of education, experience, and expertise affords me more complete and in-depth resources from which to service my clients and their needs.

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