Switching Jobs during a Loan Approval/Closing

[Juan Carlos Castillo]

So I am trying to close on my first home, and have been getting a couple of offers of employment for the past couple of months that are significantly higher pay than what I am making right now. When I first started with my realtor I was making 52k, I told my mortgage broker that I was considering accepting an offer at another firm, and she told me to tell them to wait two weeks for the start date.

I managed to get the company to hold off for two weeks, but they served me an offer letter Thursday that expired Friday for 65k with a start date for the 13th of May. I signed and told my mortgage broker this morning and she had a fit. Her biggest concern is that I am moving from a construction project management position to an entry level engineer. I told her this is common for civil engineers, but can't seem to ease her mind.

Does she have a right to be concerned? Could I lose my deposit? After all I am still working in the construction industry and will be making more money.

[Tim McKelvey]

@Juan Carlos Castillo The broker is not the one who will make the call.  It is the under-writer who will make the determination.  It may or may not be a deal breaker.  Sorry, but employer who need to hire people to get their jobs done, don't always wait around for what the mortgage broker says.  I would ensure I provided the broker with a copy of the formal offer letter so they can see the salary increase.

Did you have a contingency for getting financing approved? If so, and the lender turns you down, you should get your EMD back. If not, then you may just need to find a new lender. You will probably lose any financing related fees you paid up front.

If you do lose some funding, chalk it up as education.  If you plan on any kind of significant financial changes, it may be best to delay house purchases until after the event, or else find a private lender who will let you buy the property all cash, then cash-out refinance.

Good Luck!!