Getting a mortgage based on a job offer

[boiler717]

Our buyers (physician) say that their financing is falling through because of the gap between our closing date and the start date of the new job. They are saying it’s a “new requirement” that they can’t be more than 60 days apart. Hasn’t this always been the case? I’m confused as to why this is just now coming up.
Our scheduled close was always >90 days before the start date. Why did they get a preapproval and why did the lender agree to a close that far away to begin with?

[just]

I can't speak to the specific situation but things can definitely fall apart at the end because of stuff like this regardless of pre-approvals and the lendee doing everything right. My financing fell through 10 days before closing because I didn't have enough lines of credit. I would have thought that was the first thing that had been checked. Luckily I was able to find someone else to fast track underwriting and we did close with a minimal delay

[flygirl]

If he can’t qualify based upon current income, then he’s probably screwed. My guess is he gave the new income for the preapproval but didn’t tell them that he didn’t actually work the job yet at that pay

[wanderingback]

Apr 10, 2020 11:52:18 GMT -5 just said:

I can't speak to the specific situation but things can definitely fall apart at the end because of stuff like this regardless of pre-approvals and the lendee doing everything right. My financing fell through 10 days before closing because I didn't have enough lines of credit. I would have thought that was the first thing that had been checked. Luckily I was able to find someone else to fast track underwriting and we did close with a minimal delay

Yeah this.
I'm certainly not an expert and I've only bought one house, but I feel like it was very touch and go until the minute we actually signed. Our situation was complicated since my SO is an independent contractor and at the time I was still in residency, so I think that made things more nerve wracking. I'm not generally an anxious person but I was nervous until we signed and walked out of that office. I feel like every day leading up to closing they were emailing us asking for more information or documents and that something could go wrong at any second.

[simpsongal]

Also, just for context in this time of COVID, I just had to respond to my deputy's mortgage lender confirming that he was employed, would continue to be, and his salary would not be cut.

[scout8]

Lenders write bad pre-approvals all the time. There are a lot of crappy lenders that write the pre-approval with little to no verification. It's so frustrating because there isn't much recourse other than giving them bad reviews all over the place.

Has the buyer tried calling another lender? Sometimes one lender is able to do a loan when another one can't. Credit unions and local banks often have more flexibility. If not, how long will the closing be delayed? If you have to push back the closing for your sale, would you be able to push it back on your purchase?

[boiler717]

Apr 11, 2020 21:41:20 GMT -5 scout8 said:

Lenders write bad pre-approvals all the time. There are a lot of crappy lenders that write the pre-approval with little to no verification. It's so frustrating because there isn't much recourse other than giving them bad reviews all over the place.

Has the buyer tried calling another lender? Sometimes one lender is able to do a loan when another one can't. Credit unions and local banks often have more flexibility. If not, how long will the closing be delayed? If you have to push back the closing for your sale, would you be able to push it back on your purchase?

My lender said they only have a 90-day requirement for job offers, so they could close with them a few days later. So hopefully that’s an option. They are asking their current lender for an exemption but it’s just unlikely.
I asked our lender to say that we couldn’t carry both houses but we can, so we can’t push ours back for failure to obtain a mortgage.

[scout8]

Apr 12, 2020 5:47:10 GMT -5 boiler717 said:

Apr 11, 2020 21:41:20 GMT -5 scout8 said:

Lenders write bad pre-approvals all the time. There are a lot of crappy lenders that write the pre-approval with little to no verification. It's so frustrating because there isn't much recourse other than giving them bad reviews all over the place.

Has the buyer tried calling another lender? Sometimes one lender is able to do a loan when another one can't. Credit unions and local banks often have more flexibility. If not, how long will the closing be delayed? If you have to push back the closing for your sale, would you be able to push it back on your purchase?

My lender said they only have a 90-day requirement for job offers, so they could close with them a few days later. So hopefully that’s an option. They are asking their current lender for an exemption but it’s just unlikely.
I asked our lender to say that we couldn’t carry both houses but we can, so we can’t push ours back for failure to obtain a mortgage.

Hopefully they will agree to switch to your lender to speed things up a little bit. Good luck. 

[pinkalicious]

I’m honestly surprised that closing was set 90 days after an accepted contract. I typically do closings 30-45 days out, but I also know my lenders can get a loan done in as little as 15 days.
There are specific loans for physicians, although I haven’t worked with a physician as a buyer or seller, so I can’t speak to how they work, but I do know that the lender has some sort of variance for student loan debt due to it being so much for physicians.
ETA: also, with COVID, I have seen lenders are verifying employment on the day of closing, and people being denied their loan that day due to having been furloughed or loss of income. It’s so crazy. Also, many lenders are upping their minimum required credit score to be approved for a FHA loan.

[boiler717]

Apr 12, 2020 7:22:49 GMT -5 pinkalicious said:

I’m honestly surprised that closing was set 90 days after an accepted contract. I typically do closings 30-45 days out, but I also know my lenders can get a loan done in as little as 15 days.
There are specific loans for physicians, although I haven’t worked with a physician as a buyer or seller, so I can’t speak to how they work, but I do know that the lender has some sort of variance for student loan debt due to it being so much for physicians.
ETA: also, with COVID, I have seen lenders are verifying employment on the day of closing, and people being denied their loan that day due to having been furloughed or loss of income. It’s so crazy. Also, many lenders are upping their minimum required credit score to be approved for a FHA loan.

Our scheduled close was >90 days before the new employment start date, not after the contract.