Written by 11:07 PM Mortgage Strategies • 2 Comments Views: 3

Lose Your Job? Tell Your Mortgage Planner

Lost-Job People often think an approval and a 120-day rate lock assures them of financing.  That’s not exactly the case.  A lot can happen in 3-4 months–stuff that doesn’t make a lender happy. 

A borrower could lose his or her job, for example.  Or, he or she might miss a payment or rack up their credit cards before closing.  In cases like these, their credit scores may sink, putting them below their lender’s minimum guidelines.  If that happens, the lender may potentially back out of the deal.

Lenders are in business not to lose money.  If you’ve got a long rate-hold period, they will often check up on you before you’re set to close.  This can be months after you were initially approved.  They may call your employer, they may check your credit again, or both, in order to ensure everything’s stayed the same.

If you’re nearing your closing date and something has adversely affected your employment or credit, don’t assume the lender won’t find out.  Tell your mortgage planner immediately.  That way, your planner can deal with it before the last minute and have enough time to seek solutions.

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Last modified: April 25, 2014

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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