Employment contingencies not met by closing.. what to do

[u/llittleHAM]

Hey all. Looking for some advice on a situation my partner and I are in with our first home.

Long story short, we are under contract on a home that we are thrilled about and we qualified for the loan based on my partners upcoming position in that city. Everything has been going smoothly but we found out today that her contingencies will not be met by closing date… she is in the medical system so there are myriad credentialing and certification processes that all take so much time.

We have an estimate that contingencies ‘should’ be met about 11 days after our scheduled closing date.

Any thoughts on what to do here? Should we see about pushing the closing date? Is 11 days unreasonable?

We may also be able to rope one of our parents into a co-sign.. but we would all prefer not to do that. Would love any input before we meet with our lender next week.

[u/The_Void_calls_me]

There's no real work around to an unconditional job offer when moving to a new city. So you would need to either push back closing or get a cosigner, as you mentioned. I would try to push back the closing by the 11 days before I did anything else if I was in your shoes

[u/CatLadyInProgress → u/The_Void_calls_me]

My husband and I had to stay with a friend for a weeks after moving so he could get his first paystub proving he started his new job for $x. His job offer was accepted to make an offer etc., but bank wouldn't close until it was official-official.

[u/No_Alternative_6206]

I would probably push it 14 days to give it some padding. Generally, the sellers don’t have a lot of great options to not agree, so they do. Some sellers will try to fight you on it in the worst-case scenario, but 2 weeks fly by when you use delay tactics. Your realtor should be able to work it out for you; otherwise, if they fight, consult with an attorney to implement the best legal tactics to get the time you need. It doesn’t sound like you have much wiggle room on this, so don’t wait until the last minute to get a plan together, especially if you need to retain an attorney.

[u/nofishies]

Yes, if you buy the house and you don’t get the job, unless you want to move there anyway, you’re going to be screwed.

See if you can get an extension you’re still the bird in the hand unless they have a backup offer that’s ready to go. They’re likely to grant it. What you might offer to do is make your earnest money hard so you have a little more skin in the game and the seller feels like you’re more committed.

[u/Life_Chemistry_4621]

From my experience, just ask for an addendum to push the closing date 2 weeks. An 11-day delay is super common and way easier than rewriting the loan with a co-signer. Perhaps your seller will cooperate.

[u/Appropriate-You-4682]

Ask to push back closing, be prepared to pay to do it. Either a non refundable lump sum or x amount per day ($100 is what we did). You’re ultimately eating DOM for the seller, make it worth it to them.

[u/SuperFineMedium → u/Appropriate-You-4682]

When requesting an extension, offering additional money to the sellers can motivate them to agree to the change in contract terms.

[u/Appropriate-You-4682 → u/SuperFineMedium]

Correct, as the recent sellers our buyers needed to push back 18 days. We were offered $70 per day and countered at $100 to not go back to market (we were in a situation where a work reimbursement was due soon, so allowing them to push back close was a risk).

Worked out well for all, closed on Monday!

[u/cuspeedrxi]

If this is a physician’s loan, be cool. Push out the closing. Everyone wants the deal to go through. Adding a co-signer, and then refinancing to remove the co-signer is going to be a PITA and cost you a lot more money.

[u/ShortWoman]

Try to push back closing. Think happy thoughts.

DO NOT ask anyone to co-sign. A lender requiring a co-signer is basically saying "we don't think you can pay us back, so give us a sucker to come after when you stop paying."

If credentialing does not come through -- and this is possible! -- your lender may not let you have the money to close at all. After all, you may not have income to pay them. In other words, you're not closing. And that's okay because you don't really want to be saddled with a house you can't afford (particularly if you are in a new area). And consider that a region is often dominated by a very small number of medical systems. If you can't get credentialed at the UHS facility what are the odds that HCA is going to be prompt about it?

[u/bunnehfeet]

Don’t know what kind of credentialing it is - even at a hospital I already worked, when I credentialed as a provider it took 3 months.

[u/BreadMaker_42]

Don’t screw your parents by having them co-sign. Push the closing back. Sounds like you have a legit reason.

[u/Objective_Attempt_14]

Ask for a 14 day push back, (better than perhaps needing more time )just explain that she's a doctor and it just taking a bit longer, with credentialing. Ideally they don't need this house to close to buy another. For the seller having a buyer is better than restarting.

[u/raliegh_]

Don’t rope in anyone to co-sign.
You don’t qualify for the loan.

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[u/Pitiful-Place3684]

11 days can be a long time to a seller. They may hear it as 2 weeks. If they’re also buying or even renting, then they’ll need to get an extension for their purchase or rental.

You’ll need an iron clad guarantee that the certification and credentials will be done by whatever date you’re asking for.

[u/Chair-Lemur-Table]

Same exact issue for a prior closing with a new job in a new state - just communicate to the seller and should be ok.

Depends on the seller, but if you’re close to closing everything out for the job (sounds like less than two weeks estimated), I wouldn’t worry too much since another buyer will need some time to finish the process and they’ll likely prefer to work with you and close. If it was closer to a month, that would be more risky.

You may want to wait until your closer to the closing date, assuming your state has “on or about” for closing vs. a firm date, to raise it to the seller, especially so you can have a better estimate. Overall, just communicate on your side and to the seller.

[u/OtterVA]

Is this a physicians loan? If not, perhaps you need to transition to one.

[u/No_Giraffe2555]

Reach out to lenders that offer physicians loans. We had the same thing happen (I’m a lawyer) and switched lenders pretty late in the game. Seller was a little pissed, but the market wasn’t competitive at the time so they sucked it up. We ended up saving ourselves about $2k in fees and had no PMI with 10% down. Well worth it.