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Employment Status Change before closing

I had a mixup at my current job, and they accidentally made me a part time employee. Because where I work is a state-owned institution, there is a huge process they have to go through to fix it. Unfortunately, I'm supposed to be closing on my home that has been built (I've already put down the money) in less than three weeks, but I got a call today asking about the employment change. I explained that there was a mistake, and asked what I could do to still qualify. When we initially started the process, I was subcontracting for some companies, and I didn't want to use my 1099s for verification (because it was only a year, not two), but at the beginning of the year, one of my primary clients asked to move me to a W-2 salary instead of paying me per hour. My first payday for the year is Friday, and the amount will definitely qualify me, but I don't want to appear fishy to the MO. Should I explain this to the MO and see what they say? Or is this a bad idea. Any help would be appreciated! 
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February 04 - Raleigh
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Answers (6)

Allow me to clarify: 
1.Your 1099 jobs in 2013 are side line same type of work as the State run job
2.Your 2012 and 2011 federal returns don't show the 1099
3.Your income decreased from the State run job- BUT-- did the hours decrease as well?

File your 2013 electronically with all the income - lender will likely not be able to pull a 4506T
in the upcoming weeks showing it but they may
provide lender with EVERYTHING today

Take all your pdf files including the Full credit report, current bank, and paystubs to another mortgage banker that you can sit in front of and talk. Do not have the second lender pull your credit!  You need a backup deal -someone seasoned, smart and local. I suggest you do not go to a bank.

A "State Owned" employer may not write you any letters. Lenders will request a Verification of Employment and the status change will show.

Meanwhile- 
Can you get gift money from family if your ratios are now out of wack?
Be careful about your FICO score-- do a Federal "opt out" don't shop for anything or give anyone your social (no new inquiries)
Go back to boss and ask to be returned to full time status.
I wish you happiness in your new home.

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February 05
You should be honest and upfront with your lender. Your lender wants to help you and wants to get you the loan. So once he hears your situation he will advise you on what to do next. Not telling your lender about this will not help solve the problem and they will find out. If anything you might need some letter of explanation to your situation. Well I hope this helps. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
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February 05
Did you actually go from part time (less than 40 hours per week) to full time (40 hours per week)?  You will want to notify your lender regarding the change.  If you switched from 1099 to W2, they should be able to use your income and will most likely require a pay stub supporting the change an an employment verification confirming the dates of the changes.  
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February 05
Any change in your employment status will be an issue. Deal with this right away. Have your employer write a letter stating that there was an error in terms of your re-classification as part time. Have them correct it immediately so that your lender can re-verify this. Since you stated that your employer is "state owned" I'll assume that you meant to say State run. This could mean that the automated employment verification (i.e. @work#) may be delayed in reporting this. Be on top of this. By the way, how did the status change to part time?
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February 04
Address this with your lender asap, They will need time to start the verification process on the job that changed to a W2. They should be able to get everthing done and make for an easy closing.
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February 04
Address this with the lender - they really do want to close this loan for you. The more time they have to chase down verifications the smoother the settlement process will be.
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February 04
 
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