My husband and I were about to start putting bids on houses, but because of some confusion on his part, he failed to renew a document he needed at work in time, so now his salary has been cut back until the updated document comes in. We’re estimating his salary will be slashed in half for the next 4-6 weeks :/.
I’m just wondering if we should tell our lender or wait it out? We really need to secure a home as our lease is coming to an end soon, and this salary cut is 100% TEMPORARY, even with that I could easily cover the mortgage on my own until his money starts coming back in.
Will a lender want to drop us/slash the amount we can qualify for if we tell them about this? Or is there leniency on temporary cut backs? They already gave us a PQ letter with a great amount on it, but now I’m just worried they’ll cut us off even though this is temporary.
I’m hoping an actual mortgage lender can help me out here on what to do, and how this affects what we’d normally qualify for. Thank you!
EDIT: I’ll take help from anyone though, not just a mortgage lender, if anyone has been in a similar situation that’d help thank you!
You will be cut back. We verify your income by pay stubs, W-2’s & tax returns. We have to have paystubs that are 30 days old or less. We also do a Verification Of Employment letter that your employer fills out. We will know, there is no way to hide it. The pre-approval is based on your current income so if it drops, even temporarily, we go with that amount We also look at Year to date earnings on the paystubs to make sure it equals the amount we are using. So even if you wait until he gets his certification back you will need to do a letter explaining why this happened. Not an issue once he gets back to full salary (just need a letter explaining why he didn’t make as much year to date as he should have).