I was pre approved but recently was cut one day a week from work. Will the change in income affect me?

It's possible.. but it really depends on what your debt to income ratios are after the furlough. As far as losing your deposit, probably not.. most agents are aware that you cannot purchase the home unless you can obtain financing, so your offer is contingent upon that.. if the financing falls through, then you should get your earnest money back. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Hi! Depends on your debt to income ratios; credit score etc. You will need to share the information with your loan officer/lender. They will do a last minute verification of employment and if there's a change that they find, that you didn't share, that may be construed as fraud. Be sure to provide a current pay stub. If you might have something in writing from your employer that explains your new hours and compensation, then you'll want to give them that too. Otherwise, figure out how many debts you have (monthly payments reporting on credit) add that up with the new mortgage payment (principal, interest, taxes, insurance, mortgage insurance if applicable and HOA fees if applicable) take that figure and divide that by you new income and that equates to you back end debt ratio if it's over 43-45% then depending on the program and your over all financial profile would determine if there are compensating factors to let the ratios go higher. You also will need to be concerned with the front end ratio. You calculate that by taking your mortgage payment and divide that by true gross monthly income and that's your front end. If that number is over 38% then, again, it's going to depend on your profile to see if you'd be eligible to go higher. I'm a mortgage loan officer licensed in the State of Ohio only. If I can answer any other questions, I'd be happy to help. Best Regard, Kim Lawson. Contact and licensing information can be found on my profile.

If you are saying you went from 5 to 4 days a week that would mean a 20% pay cut. This could have a significant impact on your ability to qualify. If it does there are a couple of things you can do: pay off debt or increase your down payment. Work with your loan officer on this. Since the reduction in hours occurred after you were pre-approved there is no way this would be considered fraud as it was unknown to you and not in your control. For these reasons I would like to think that the seller would refund your earnest money deposit. Best of luck to you.

Yes. They have to verify your inome

Maybe... Each person and situation is different. It may mean nothing, it may be a deal killer in terms of your debt-to-income ratio. Underwriting may also now be concerned about your stability of income. Contact your loan officer to discuss the details, and good luck.