If you are purchasing or refinancing a home with a loan (not FHA)

DO NOT BUY ANYTHING WITH YOUR CREDIT CARDS.

As of June 1st Fannie Mae is requiring lenders to check the borrowers credit right before funding.  If anything changes on your credit your loan that you already have signed loan documents on could be denied.   In order to protect yourself

1) DO NOT BUY ANYTHING WITH YOUR CREDIT CARDS OR OPEN NEW LINES OF CREDIT.

2) PAY YOUR CREDIT CARDS ON TIME

3) DO NOT ALLOW ANYONE TO RUN YOUR CREDIT.

By following the three above rules you will have no problems.  If you decide to go against any of the above you could be setting yourself up for disaster.

There are two issue with this. 

#1 misrepresenting income or continuance of income is fraud.  Mortgage fraud is very serious and carries severe penalties.

 #2 the bank would find out because every single lender verifies employment right before the loan funds.  If the lender finds out there is no longer a job and the borrower does not qualify without it the buyer loses the loan and generally their deposit as well.

There are 3  ways employment is verified on every loan.

#1 Current paystubs and w2′s

#2 The loan processor requests a written or verbal verification of employment before the loan is submitted to underwriting.  They contact your employer directly for this

#3 Verbal verification of employment at Funding.  They will not fund the loan unless your employer verifies you are still working there.

If you are leaving your job and do not have another job lined up you should not be using that income to qualify for your loan.  If you switch jobs in the middle of the loan you need to tell your lender so that they can adjust the transaction.  Many people think that if they get through underwriting and they sign loan documents they are in the clear.  You are not in the clear until the loan closes and the house has recorded./  Honesty is the best policy.  If you are working with a lender that is encouraging you to misrepresent yourself leave that lender quick.  Mortgage fraud is serious and no house is worth it.