MortgageFeliz

I’ve been working at a manufacturing plant for over 11 years. I’m about to close on a loan for my house, what happens if I lose my job before I get the loan?

Unfortunately, if you lose your job before your loan closes, your application could be denied automatically.  If you’re married, and your wife makes enough money to cover the loan payments, it’s possible the lender will approve your loan anyway.  If you lose your job, don’t give up hope.  Wait until the situation changes and you find work. I suggest you look for the same line of work, earning the same or more than before, to   avoid being subjected to this two-year (employment) rule when you reapply for the loan.

I want to buy a house, but have been told that if I haven’t been working at the same place for more than two years I won’t get a loan. Is this true?

In order to lend you the money, any lender is going to ask for proof that you are earning a stable income.  To minimize their risks, lenders require you to have at least two years at the same job.  They want to be certain that you have been working and will continue at your job for many more years.  That is why, it is quite certain your loan application will be rejected if you do not meet this requirement.  Of course there are some exceptions.  For example, if you work as a clerk for a store that pays $25,000 a year and the store across the street offers you $35,000, the lender will more than likely be flexible should you decide to switch jobs, since you would remain in the same line of work and the change would be an improvement.  But, if one year you are employed as a mechanic, the next six months as a cook in a restaurant, then decide you want to sell shoes, it’s almost certain your loan will be denied, even if your earnings have increased with each move.  Why?  Lack of consistency and stability.