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What should we expect to happen? Co-Borrow lost job during closing?

While in escrow on an RD loan, my husband lost his job due to a fire where he worked, but started working less than a week later for an old employer. My husband's pay structure is the same and we can still afford the home, but the major problem is, both his last job and new job are a tip based income. Good news...there is no 90 day trail period because he has worked there for 3 years before and they are thrilled to have him back. Our mortgage officer had us write a letter explaining what happened and said he is sending it to the underwritter as is. My income is three times higher than his, but I can't carry the amount of the mortgage on my own due to the ratio.

Our Mortgage Officer advised me not to panic yet. But I can't help but think we will not get funded.

Has something similar happened to anyone?  What was the outcome?

  • October 12 2012 - US
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Answers (1)

To the best of my knowledge, as long as his new job is in the same related field that he has been working in and he can prove his earnings, you will likely be OK especially since he has a prior job history with this employer.  Don't panic.  The letter of explanation should be sufficient and I'm sure your loan officer knows how to deal with this.  I've seen other scenarios that are similar - job loss during loan process, but they almost always result in loss of income and no new job in the same field so those are the situations that result in a denial.  You are fortunate, and just hang in there and listen to your loan officer's advice.  Good Luck!
  • October 12 2012
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