Need a new job, but trying to buy a house.....

[KCCutie]

So, I''ve posted a couple threads about my search for a house and I am now playing the waiting game on a short sale.

Here''s the problem we hoped to get into the house fast so I could start looking for another job. My current job is too far from the area we will be moving to, but more important than that 1. it''s terribly boring 2. I''m pretty sure the company is not doing well financially. Really I''m so bored I can hardly stand it (thank goodness for PS I''d go nuts with out something fun to read) and there is never enough money to pay all the bills on time (I know b/c I do the A/P) so I''m worried they won''t be able to pay me soon. The office lease is up in Aug and my boss hasn''t renewed b/c he says he''s not sure if he''ll stay and they haven''t had business insurance for the office for a year now (just found this out) so they are already in default of their lease and the leasing office knows this. So even if he decides he wants to stay they may not let him. It''s been so slow and I know my boss is counting on one big project to come through but I have a feeling it''s going to take much longer than he expects.

I know I should be looking for a new job, but I''ve also heard you shouldn''t change jobs when you''re in the middle of buying a house. We''re doing an FHA loan so being in the same job or field for a certain amount of time is required but if I get a job in the same field will that jeopardize our loan? I''m starting to really worry he may decide to let me go before we close b/c he''s out of money? It could be 3 months or more before we close on this house b/c of the short sale. What would you do?

 

[Lauren8211]

I have not yet bought a house, so I don''t know all that much about how switching jobs affects your ability get a loan.

However, I personally would be more freaked out at the prospect of losing my employment right when I''m buying a new home, versus switching jobs while I''m trying to buy one. Getting into that home is going to be expensive, and I''d want a steady income. It would make me nervous making such a big purchase without a secure job.

Good Luck, girlie!

 

[Keepingthefaith21]

When I was looking I was in your exact same situation. The business was barely afloat, I was concerned that I would come in one day and there wouldn''t be enough money to give out paychecks. It was a terrible nightmare.

I called my lender and in confidence I told him the situation with my job. He told me that as long as I stayed within the same field that I would be fine. This put my worries at ease. Although I started looking for a new job, I did not obtain one until 3 months after our move so I can not tell you that I changed jobs and everything was fine. However, after talking to my mortgage broker, I was not concerned about a change. We also were not considering FHA loan.

Call your loan broker or representative and talk to them about your concerns. They should be able to tell you how a job change would impact your loan.

The general rule of thumb that I know most go by is as long as your salary does not drop and you are in the same field you should be okay.

 

[KCCutie]

Thanks!

I''ll talk to the lender and see what he says. We were told we could be approved for much more than we ware looking to spend (we do not want to be "house poor") so I would guess even if I have to take a small pay cut(and I mean small like 3%) we''ll still be okay. I''ll ask him though.

That makes me feel a little better though. Guess I better update my resume.

 

[applequeen]

Hi KC,

We were in a similar situation when we bought our house. In fact, my husband started his new job (after not working for a couple of years while he went back to school) the same day we applied for our mortgage. Since he had been working in the same field for years (the degree was also in the same field) it was no problem whatsoever. Like you, we bought a house that was much less than what we technically could have qualified for (and we could have qualified for this mortgage on only my salary if it had come down to it) so there was nothing to worry about. Our mortgage sailed through (although we were first time homebuyers we went the conventional route rather than FHA...no particular reason why... it just worked out that way). I think that as long as you''re in the same field you will have no problems due to a job change.

I did check with our lender before I went ahead with actually applying and was told not to worry about it.

P.S. I hope you find a new job soon because it really sounds like you need one. I''ve been there... while working at my first job out of grad school (non profit) I took my paycheck to the bank to get it cashed (didn''t offer direct deposit) and it was denied due to insufficient funds! Thank goodness I got out of there.

 

[KCCutie]

I asked my lender if changing jobs would be a problem (but I did not tell him how worried I was that my current job is so unstable) and this is what he said:

"FHA underwriters are very strict when it comes to underwriting. I know it is the same line of work and same pay but I would wait. The underwriter makes the final decision."

Here''s the deal we have yet to hear from the sellers agent and we''re still waiting to see if their lender will take our offer on this short sale. It could take a while for them to approve it possibly a couple months then we have to go through closing. I''m worried that the process could take 3-4 months (at the very earliest it will be Aug 30 before we close).

I re-posted my resume on-line and had a call yesterday about a job that would definitely work but now I''m scared I shouldn''t go to any interviews. I''m even more scared that this job won''t last through closing.

I haven''t spoken to my boss about it yet. He owns the company and I''m his only employee. he knows I am trying to buy a house....should I talk to him? What should I say? Should I explain to the lender that I''m afraid if I don''t get a new job I could be left jobless at any time?

UGH this is SOOOO stressful!

 

[robbie3982]

Is there anyway that you can qualify on your DH''s salary alone? That''s what we had to do when we bought our house. We weren''t able to count my salary because i wasn''t starting the new job until after we closed since we were moving from a different state. I was even staying in the same field, but they wouldn''t count it. Luckily we qualified on DH''s salary alone which is crazy since we spent at the top of what we feel we can actually afford to spend taking both salaries into account and DH and I make about the same. It''s crazy what they''ll approve you for. I''d see if that''s an option.

 

[KCCutie]

I don''t think that''s going to be an option. I did one of those how much house can you afford using just his info and got about 20K less than what our current offer is.

I just wonder if I should say something to my boss.....but what do you say...."ummm I know you have no money so I was just wondering....am I going to lose my job?"

 

[applequeen]

Hi KC,

To be honest, I think you have to pursue any new job opportunities that you can. It really sucks that all this is happening right when you''re in the middle of buying a house but I think you already know where your current job stands. Would you feel better if your boss confirmed it? If he tells you that your job is safe would you be able to believe that given what you have seen of the company''s financial situation?

Even though the underwriters dont'' know the truth of your current situation, the truth is you''re a much greater risk to them now than you would be if you switched jobs.... sometimes I wonder just how much "common sense" underwriters are able to use. Maybe they''d approve the loan given your current status but what if you lost your job the day after closing? You''d have the home and the mortgage you want but would you be able to comfortably afford it until you found a new job? What sort of emergency fund will you have left over after the down payment and closing costs are taken care of?

Good luck... you''ve really had a tough time with this house stuff.

 

[robbie3982]

Date: 7/17/2008 2:19:04 PM
Author: KCCutie
I don''t think that''s going to be an option. I did one of those how much house can you afford using just his info and got about 20K less than what our current offer is.

I just wonder if I should say something to my boss.....but what do you say....''ummm I know you have no money so I was just wondering....am I going to lose my job?''

That''s the ludicrousness of the housing situation, banks will still approve you for way more than you can actually afford. I''d talk to your lender about it. It can''t hurt. I really thought there was no way we''d get approved on DH''s salary alone since there''s no way we''d be able to pay for it on DH''s salary alone. We actually could''ve gotten approved for more than what we did, which is insane. Sometimes I think they convince themselves that a mortgage is the ONLY bill that people have to pay.

 

[KCCutie]

Date: 7/17/2008 2:39:00 PM
Author: applequeen
Hi KC,


To be honest, I think you have to pursue any new job opportunities that you can. It really sucks that all this is happening right when you''re in the middle of buying a house but I think you already know where your current job stands. Would you feel better if your boss confirmed it? If he tells you that your job is safe would you be able to believe that given what you have seen of the company''s financial situation?


Even though the underwriters don''t know the truth of your current situation, the truth is you''re a much greater risk to them now than you would be if you switched jobs.... sometimes I wonder just how much ''common sense'' underwriters are able to use. Maybe they''d approve the loan given your current status but what if you lost your job the day after closing? You''d have the home and the mortgage you want but would you be able to comfortably afford it until you found a new job? What sort of emergency fund will you have left over after the down payment and closing costs are taken care of?


Good luck... you''ve really had a tough time with this house stuff.

Thanks AQ!

You''re right if he told me my job was safe...The truth is, NO I wouldn''t believe him....so I don''t see why I should bother asking. Also I''ll feel much better if I have a new job at least lined up before we close on the house and I don''t understand why an underwriter would not understand, but I guess sometimes they have strict rules. I''ve been applying for jobs on-line so I''ll just keep that up. If I get real closing date for the house I''ll just make sure that I''m not switching jobs the day before or anything. Our goal is to close by Aug 29, but I really don''t know how realistic that is (with the short sale and all) so truthfully I probably have more time than I want to believe. Maybe the time it takes for this short sale to close will really be a blessing I''ll try to keep telling myself that.

 

[applequeen]

Sounds like a plan... just proceed with the job search and deal with switching before closing if and when it happens.

It''s already mid July so if you were offered a new position by say mid August you could probably ask for a start date in early Sept. (give 2 or 3 weeks notice which is pretty standard)... and hopefully close on the house on Aug 29 (just before you''d technically have to switch jobs!)