How to keep your loan approved – Income

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blog-author-clayjeffreys3

Yes, you can actually get your loan approved… and then do something to cause your loan closing to be delayed or maybe even unapproved altogether. This can be done with actions involving income, assets, and credit. In other words, every part of the loan process.

Over the next few posts, we’ll take a look at some things to avoid in each category. Today, we’ll start with income.

There is one thing to remember in this series. The examples being provided are ways the loan can be delayed or denied AFTER receiving loan approval.

Some of these may seem obvious, but they are worth mentioning.

  • Don’t quit a job: I know this one sounds really silly, but apparently it has happened enough that we must re-verify you are still employed on the day of closing. If you use income from your job to qualify for the loan, you probably don’t need to quit until after you own the home!
  • Don’t change jobs: Again, seems silly, but you would be surprised. If a great job opportunity comes up during the loan process, let your mortgage loan officer know. Together, we can work out the details of the change. What we want to avoid is becoming aware of this on the day of closing, and potentially cause a delay/denial of the loan.
  • Don’t change from a W2 salary position to another form of compensation: If someone moves from a W2 salary to full commission, we have lost that income for qualifying purposes. Borrowers who earn income through commission, bonuses, 1099 or are self employed require tax return(s) to verify income. If the switch is recent, that means there is no tax return history to verify the new income. That would mean we can’t use the income anymore, and may cause the loan to be denied.

Got a job transition coming up, and you are looking to buy in the state of Georgia? Contact me today. We can work through the job transition to ensure your closing isn’t delayed. The last thing we want is to make a silly mistake and cause problems putting you into your new home.

Let's not upset Mr. T!

Let’s not upset Mr. T!

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