Why You Can’t Quit Your Job During the Loan Process

Real Estate Podcast with Patrick Fitzgerald

If you’re planning on buying a home and going through the loan process, don’t quit your day job. You’d be surprised at how often this happens. Let me tell you a quick story. I’m doing an FHA loan right now for a wonderful client. We contacted her employer to verify her income, but the employer relayed to us that she no longer worked there. Imagine the panic we had when finding out that information. We found out that she quit her new job, but started a better job with higher pay so she thought it wouldn’t be a big deal. “We had to delay the contract by about a month.” It was a big deal, and here’s why. Under FHA and VA loan guidelines, we need to have 30 days’ worth of paystubs at their new job to verify their income. Her contract was supposed to close on July 5, but now we’re going to have to delay it for a month or so. It’s causing all kinds of tension with the seller, the buyer, and their Realtors. If she would have contacted us before quitting, we would have advised her to wait about a month until the property closed to start her new job. If you’re contemplating a job change, even if it’s higher-paying, better job, try to wait until your loan is closed. If you have any questions for me or know anyone in a situation like this, don’t hesitate to reach out and give me a call or send me an email. I’d be happy to help.