Applying for home equity loan while changing jobs
May 21, 2013 11:47 AM   Subscribe

We are about to apply for a home equity line of credit. The guy at the bank already ran our credit and verified rates and eligibility. I'm also about to change jobs. What should I do about the loan?

To be clear, I haven't applied for the loan yet, and I haven't given notice at work. I'm subject to a background check at the new job that takes a while to clear, but my plan is to be at my current job through June 21, take the following two weeks off, and start the new job on July 8. The bank guy said the closing would probably take place the third or fourth week of June. I don't mind delaying the closing for a few weeks. I would rather not change my work and vacation plans.

The new job involves a steep (nearly 30%) drop in our household income. However, our income should still be plenty to qualify for the loan. Should I tell the bank guy about the upcoming job change now, before applying? Should I try to just schedule the closing right before I leave work? Assuming I've already given notice when the bank calls to verify my employment, will my employer tell them that? Do you think the bank will give us a hard time due to the job change?
posted by chickenmagazine to Work & Money (3 answers total) 1 user marked this as a favorite
 
Definitely try to close the loan before you leave your current job. It's not just the income, it's your job stability (the longer you've been at a place, the better, generally) and all the paperwork you'll have to give the lender on the new job (which in turn can hold up the closing).
posted by payoto at 11:52 AM on May 21, 2013 [2 favorites]


Lock it in and close it before you change jobs.

For the reasons Payoto said.
posted by Ruthless Bunny at 12:04 PM on May 21, 2013


Close the loan, then give notice. Sometimes things go wrong with new jobs. Delay your job change until after the closing. Your employer would tell them that you gave notice and the bank would likely deny you. My SO and I recently went through something like this, which turned out okay in the end, but we aged a half year in 5 weeks. Don't risk it, poultryperiodical!
posted by vrakatar at 2:06 PM on May 21, 2013


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