What If I Lost My Job After I Applied for A Mortgage?

When you first apply for a loan, there’s an income verification process. If you lost your job or have been furloughed due to COVID-19, then you’ll want to report this status change to the lender. It’s common practice to verify the income once more before closing, so there is no reason to try to hide this income loss.

Continuing towards loan approval depends on whether you applied solo or you applied jointly. If you applied with just your income, then you will need to pause the process for now.

If you applied with a partner and their income is enough to qualify what you were quoted, then likely all is well, and you can move forward as planned.

If your income provided a lot of weight to the application, then you may qualify for significantly less or may even need to pause the process. Things may be slightly different if you are furloughed.

If you find yourself temporarily without income because of mandatory closures and social distancing measures, and you are expecting to return to work, then there may be options available. Sometimes a letter from your employer that explains the circumstances and optimism for your return to employment may be enough to continue with the application.

Don’t let it get you down if you’re forced to pause the application. The market will be shifting quite a bit over the next weeks, so getting a deal is still possible. Use this time to educate yourself on the home buying process and improve your credit. Keep charging and try to enjoy some family time! It will all work out!! If we can help in any way, please let us know.