I am buying my ex out and fear that loan may be denied
I am currently refinancing a home that is in my name and my exs name. I am buying him out. The problem is, I was not able to secure the loan myself coz of credit card debts my ex left me. I added my son on the loan as he will be living in the home. We are waiting on appraisal and are close to closing on the loan. My son got injured at work during a camp activity and will be getting workman's compensation for a while. Will this affect our loan application? Should I tell my mortgage company about this? by jana499 from Detroit, Michigan. Mar 28th 2023
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
It may....usually WC income is lower that work wages. Lender will do a verbal work verification before close. HR will most likely inform the lender that he is out on workman's comp.
Dave Skow (daveskow)
#1 ranked lender in Washington - 455 contributions
Yes tell your lender the details ....yes - the loan likely wont be able to close until your son is back to working on his job ...also check to see if there are any fees charged for adding your son onto the title and new loan as many states do have taxes paid when adding or removing a party
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
Yes, you need to tell the lender. We typically do a final verification of employment within a few days of closing, in which the workmans comp issue will be discovered. better to deal with it upfront. Next, workmans comp will throw a monkey wrench into the mix, but is not necessarily a deal killer. Each case is different. I provide home loans in MN, WI, IA, ND, and SD. Find me online at FirstTimeHomeBuyer-MN.com | Cambria Mortgage | NMLS 274132
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