Q: I have a mortgage question. My husband and I are due to close in March on a newly-constructed home. What happens to our mortgage commitment if my husband is laid off from his automotive technician job and finds another job, but not in that field?
A: Fifteen years ago, when I started writing about real estate, lenders were very concerned about job stability. It seemed funny to a lender if a borrower switched jobs just before closing or, worse, left an industry to make a lateral move to another industry.
Fortunately, lenders no longer worry about what job you have as much as they like to see you gainfully, and continually, employed. It will be important for your husband to show that he is making the same amount of money at a full-time job. It is not necessary to explain why he has left his career as an auto mechanic to switch into cake decorating, for example.
Please be sure your husband is gainfully employed in a full-time job on the day of closing because the lender is likely to pull another credit history and may call his company to verify employment. If he does switch jobs, you should let your lender know, so there are no “surprise factors†on the date of closing.
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