Changing jobs soon after loan application

[apra143]

Hey all,

Thinking of renting (bad investment) or buying (good investment, with rent/share accommodation) a home. However, I will be changing jobs from Company A (less secure job, I handed in my 4 weeks notice already) to Company B (more secure job) in a months time.

Lender is asking for current payslips and bank statements (usual process) for loan application, which I have provided. However, I have not mentioned that I'll be changing jobs in a month.

It feels unethical, but is it really wrong?

Company B is more secure and more pay, but I'd be in the 6 months probation.

The area where I am buying is a good investment. Even if I fail to get renters/boarders (unlikely though), and even if I loose the Company B job (unlikely) I can 99% be sure to get back into Company A.

Tough question - should I tell the lender about Company B and jeopardise my loan chances?

 

[tech/a]

Hey all,

Thinking of renting (bad investment) or buying (good investment, with rent/share accommodation) a home. However, I will be changing jobs from Company A (less secure job, I handed in my 4 weeks notice already) to Company B (more secure job) in a months time.

Lender is asking for current payslips and bank statements (usual process) for loan application, which I have provided. However, I have not mentioned that I'll be changing jobs in a month.

It feels unethical, but is it really wrong?

Company B is more secure and more pay, but I'd be in the 6 months probation.

The area where I am buying is a good investment. Even if I fail to get renters/boarders (unlikely though), and even if I loose the Company B job (unlikely) I can 99% be sure to get back into Company A.

Tough question - should I tell the lender about Company B and jeopardise my loan chances?

Easy answer

NO!
If they don't ask you don't volunteer.

 

[knocker]

Yes.
They will find out anyway when they call your existing boss. and then because you lied to them they will not lend money to you. So honesty is the best policy even if you don't get the money.

I recall how hard it was getting my first loan. The bank manageress was such a b!tch I had to take her out to dinner. lol

 

[apra143]

Hehe, one vote for No, the other for Yes.

Back to where I started

Note: the lender hasn't asked for contact details, just payslips and bank statements. So technically, I haven't lied to them. I have just answered their questions.

 

[nunthewiser]

Go with NO

IF questioned one can always explain

if not questioned one is explaining for no good reason and maybe causing problems


not advice merely opinion

 

[Aussiest]

No. Surely they wouldn't ask your current boss how long you're intending on staying? If you fess up, you'll have to wait another 4 months (1 months' notice + 3 months bank requirement) to get the loan. If you have sufficient funds to cover if anything went wrong, then i would get the loan based on your current situation.

 

[tech/a]

Lets take this case.

You get a loan buy your house then loose your job!
You go to your lender and tell them.
Their response will NOT be to sell your home.
They wont care as long as you make your payments.

At the time you took out the loan you were in the job.
You supplied what you were asked to.
They will make a decision based on what they know.

Relax.
They want your business.
Your not privilaged to have been offered a loan by a bank.
Your a client they should work for it.

Remember if you owe enough to a bank and cant pay---the banks got the problem--not you! Banks will negotiate anything if their loss is potentially big enough.

Owe a few $1000 and you cant pay---you'll be treated like a criminal.
Owe a few Million and they will treat you like a king.

 

[apra143]

Great stuff.

I do indeed have sufficient funds to cover if anything went wrong.

 

[trainspotter]

As long as the bank does not contact your existing employer to confirm your employment I would be keeping SCHTUM. If they do then you can evidence them the NEW job you are going to. If this happens they will ask for employment letters etc. As for the 6 months probation, the bank will more than likely offer you the loan AFTER the 6 months probation has finished.

If they don't ask, then you don't tell. IMO

 

[johnnyg]

Yes.
They will find out anyway when they call your existing boss. and then because you lied to them they will not lend money to you. So honesty is the best policy even if you don't get the money.

I recall how hard it was getting my first loan. The bank manageress was such a b!tch I had to take her out to dinner. lol

I don't know about you but my first and current mortgage was easy to obtain, and they certainly didn't call my boss.

Provided a couple of pay slips, savings records, 2 group certificates.

Just had a friend apply also, it took 2 days for the bank to approve her loan. In saying that she was very similar to my situation, 2 pay slips/2 group certificates/great savings record and $0 debt.

 

[skc]

Consider taking a middle road.

Mention to the bank manger that you are considering changing jobs. Outline the situation how the second job is more secure, better pay etc...

So if and when they do call your boss you are covered. You also satisfy your ethical concerns.

When you do change job and need to tell the bank, again the expectation is there so shouldn't be any dramas.

Good luck.

 

[Krusty the Klown]

I'm in the NO camp.

If the loan has already been approved then your problem is solved.

Having worked in a major bank and being involved in this area my opinion is also don't volunteer anything - only provide info they ask for.

Your lender has sales targets to meet, so they don't want you to make their job any more difficult by muddying the process.

The only problem you may encounter is if there are delays in the settlement process - which can take 3 months in extreme cases. This may require you to submit new pay slips. An option if this happens is go for a low doc or no doc loan.

You don't have to stay with your current lender if they knock you back. There are plenty of mortgage brokers who will get you the loan. It is a very competitive industry - and they ALL want your business.

 

[apra143]

Cheers everyone. Puts me at ease. I was pretty much thinking NO too.