Pregnant Women May Get Denied for a Mortgage!
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I hope everyone had a great Labor Day weekend!
In the spirit of Labor, I'm going to tell pregnant mothers why they may get turned down for a mortgage. You might be surprised.
I deliver in today's episode:
Surgeon General's Warning: Having a baby may be hazardous to your mortgage!
Yes, it's true. Some mortgage lenders will deny your loan if you're pregnant.
If you'd like to avoid adding one more pain to your delivery, you'll need some insider info. That's what I'm here for.
Here is what you need to get a mortgage approval using a pregnant woman's income if she's going on maternity leave:
1. Written verification from the mother-to-be stating her intent to return to work upon completion of her maternity leave.
The employment must be under the same terms as prior to the leave. The letter must also include her date for returning to work, which must not be more than 60 days after the closing date of the loan.
The last part may be a deal breaker for some. If you go on maternity leave for any time longer than 60 days, you won't be able to use your income and you will have to return to work full time before you will qualify for a mortgage. In this is the case, I suggest you close on the loan prior to your maternity leave.
2. A letter from your employer stating you will have a job when you are done with your leave.
It must also include a start date and an agreement that she will be on the same terms prior to the leave. When you return to your job, you will need to work full-time because you cannot use part-time income towards your mortgage qualification.
I see some lenders are being sued for not using income during maternity leave. I don't recommend hiding this from your lender.
3. Dads won't be able to use a new second job to qualify.
If any of you expecting dads are considering a second job to use as income for your mortgage loan, you shouldn't bother. You need to have a two year track record of having a second job to use it towards a loan.
Despite these challenges, you should be able to avoid these "labor" pains if you are prepared and have the correct documentation. I hope this helps.
Good luck with the new baby. It's going to change your life...forever!
Let's change the way people shop for a mortgage…forever!
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