Bank Loans if Recently Laid Off

[Harry Orfanos]

Quick question here.

I currently have enough capitol saved up to make a move on a real estate investment property (Most likely Ohio or Jacksonville), but was recently laid off from my company.

My question is, will a bank give me the time of day if I am currently unemployed, or is it still worth reaching out to have that loan conversation with them?

Or should I pick up the loan conversation once I am employed again?

Thanks!

[Randall Alan]

@Harry Orfanos

The bank is always looking at you and asking themselves, "How are they going to get repaid?" They use debt to income as one of their primary measurements. With no income, your DTI is likely not going to hold water for them. Plus, they want you to have reserves for your property in case it sits empty between tenants or what have you. It will likely take at least 6-12 months of you at a new Job before they start to get comfortable with your new job fully supporting you.

All the best!

Randy