employment lapse question
Hello!I have been "pre-qualified" for a new home loan by my current mortgage company.My husband just started a new job, and had a 5 month lapse in employment. He has been in the same career for 25 years. They asked for a letter explaining the lapse. My question is, will they call his former employer to verify reason for leaving? He left on bad terms and they do not agree as to why he left.Will this hurt us? by beaverdam from Bedord, Pennsylvania. Oct 26th 2009
Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions
They may call the former employer to verify employment dates, but "reason for leaving" is not usually a factor.. Employment income is usually verified by tax returns or w2's. As long as the explanation letter is truthful and believable it will probably suffice. If your approval is with a depository bank rather than a mortgage lender, there could be more questions to your employer as they are typically much more conservative especially in todays market.
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