All your papers are in. You are good to go. Plot of land. Check. Loan Approved. Check. Everything is falling into place. You’ve read all the blogs we’ve published and participated in our community page. You are ready and excited. Then, out of the blue, you lose your job. You just became and unemployed home buyer.
While this sounds scary, it shouldn’t be the end of the world. Here’s what to do just in case you do end up in this situations.
Look at your Buyer-Agency Agreement with the Realtor/Broker
The Buyer-Agency Agreement is signed by the buyer once they decide to work with an agent. Most importantly, it contains the conditions of the relationship between the buyer’s agent, his brokerage and the prospective buyer. The document states who pays your agent’s commission when you purchase a home. In most cases, it is the seller that pays the commission, which is good for you! But there are cases that the buyer pays for the commission.
The Unemployed Home Buyer Talks to the Lender/Bank
If you haven’t been approved for a loan, talk to the bank to make sure you are even going to qualify to buy a home now that you are unemployed. If you are already approved for the loan, talk to them to let them know of the situation. You need to talk to your realtor as well.
Liabilities and Contract
The worst case scenario is you can no longer purchase the house. That is something that can be dealt with and save up for in the future. In the meantime, check the status of your contract. What liabilities do you now have? Will you get your deposit back? Your realtor should be able to talk to you about the things you’ll need to take care of.
It may be wise to consult an attorney whether or not you are released by the sellers from the contract.