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My husband and I have very good credit and were looking to build a new home. We were pre-approved for more than we need but he was recently fired and now is amidst of finding a new job. I’m also eligible for a VA loan, we were already probably going that route. The question is, can we still get the mortgage and is it better to just put it under my name? (His credit is excellent and mine is good) Is there a way to find out without hurting our credit? If he finds any employment at all will that be sufficient? You may also need to know that even though I am part time, I make good money and can carry the mortgage we need on my check alone.

Thank you for any good advice you can offer

  1. Reply
    February 5, 2014 at 2:47 pm

    You need to do the right thing: Contact the lender that pre-approved your mortgage and tell them that your husband has lost his job and that you need to be re-assessed for a mortgage.

    I hate to be so direct: But chances are very slim that the bank will still hold up their end of the pre-approved mortgage. You were pre-approved with the understanding that both of you had a certain combined income. Now that the situation changed the bank will rescind their original offer simply because the facts are no longer the same.

    No matter how great his credit is… if he does not have an income then that will change the whole picture. They may reassess the situation and go by your income. That means you can expect to get approved for max. 3 times your yearly gross income. You do the math. If they even go there. You may be able to carry the mortgage with your income but the bank wants to see that you don’t use more then 28 to max. 33% of your income for the mortgage. Can you still do that?
    Only one third of your income can pay for the mortgage.

    Please sit down and reconsider buying a house until your husband has found another job. Use the time to build your downpayment fund and don’t let this temporary setback get you down. It could have been a lot worse…. you could have been saddled with a mortgage and then he lost his job… then what?

  2. Reply
    Michael T
    February 5, 2014 at 3:36 pm

    You mentioned that you were looking to build a home so that should indicate a construction loan.

    Normally you can’t get pre-approved for a construction loan. You are either approved or not approved after providing paperwork, plans, cost estimates, etc.

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