Helpful Tips, Mortgage Guidelines
You Can Still Get A Mortgage If You’re Pregnant – No Kidding
July 22, 2010 by James K Barath, CMPS · Leave a Comment
The New York Times ran an important story this week concerning pregnancy and mortgage approvals. Titled “Need a Mortgage? Don’t Get Pregnant“, the article discussed the difficulties that expecting and recently-expanded families are having with their mortgage financing.
NBC’s The Today Show picked up the story as well, as shown in the 3-minute clip above.
The crux of the issue is that maternity/paternity leave often leads to a change in household income and mortgage lenders will no longer assume one or both parents will go back to work full-time. The loss of income can raise a household’s debt-to-income ratio to unacceptable levels.
Your mortgage loan originator cannot ask you about a pregnancy. Such questions would be in violation of Equal Credit Opportunity Act. But he can ask if whether you expect your future employment and income situation to change. This would be a perfect time to discuss the topic. And you should. If you’re found to have withheld employment and income information from your lender at a later date, it could result in an immediate loan denial plus a loss of earnest monies paid.
The prevailing message across both pieces is that families concurrently planning to (1) have a baby and (2) buy a home should be up-front and forthcoming with their mortgage loan originator. Financing is often still available for families expecting a new addition — there’s just some extra paperwork though which to work.
Be prepared for that paperwork and you’re more likely to get your home loan.
About the Author: James K Barath is a Certified Mortgage Planning Specialist, qualified liability advisor and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James Barath today for your Borrow Smart Analysis - the CALM Approach to Borrowing ! His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy! 