I approved a mortgage but then found out that I will be fired: do I have to let the bank know, even though I am confident that I will find another job? - News-Credit-Mortgage-Coin


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Tuesday, October 6, 2020

I approved a mortgage but then found out that I will be fired: do I have to let the bank know, even though I am confident that I will find another job?

I am in the process of buying a home and have approved my mortgage application. However, I was just told that my company is making me redundant because the coronavirus is putting a strain on your finances.

Do I have to tell my mortgage lender since I'm pretty sure I can get another job quickly so that my ability to keep up with repayments isn't compromised?

If I don't tell you, will you find out anyway?

Sam Harhat of Andrews Property Group replies: Many other people are undoubtedly in a position similar to yours.

Their dream home is within reach, they received their mortgage offer and then they got bad news from their employer for taking a financial blow in the ongoing Covid-19 crisis.

I'm not going to beat the bushes in my answer to your question: in any event, you need to be completely honest with your lender, not just because it is the right thing - and contractually binding - but because it is a decent mortgage The broker will advise you, it is in your own best interest.

After all, we're talking here about assuming what is probably the biggest debt of your life with no guaranteed means of payment, which, when you think about it, is a pretty insane and irresponsible thing to do.

Okay, you might get lucky and get your next job, but what if you don't because so many employers are struggling too right now and there is a lot of competition for every position available?

As the vacation program winds up, many are predicting that unemployment will rise, and if that happens, finding a job may not be as easy as you think.

You should keep in mind that when you are renovating and buying new furniture, it is the first few months of home ownership that are usually the most expensive.

In other words, you will face tremendous income pressures once your spending skyrockets.

You then run the risk of not only losing your home, which is a traumatic experience in itself, but also ruining your credit record and taking home ownership off the cards for potentially many years.

In other words, the risks are so criminal that you have to wonder if it's really worth it.

For me, as tough and annoying as it is, the only thing you can do is get completely clean with your real estate agent and lender, put your mortgage application on hold and focus 100 percent on getting a new job and steady new income .

With luck, you could get the job you thought you would be in your new home after a brief delay for the next year and save yourself endless stress and uncertainty - not to mention decimated creditworthiness and all that damage to yourself Your personal finance that includes that.

Just think of it as a bit of a short term pain for long term gain.

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