3 Things To Consider When Getting A Mortgage While Pregnant
Getting approved to purchase a new home can be a balancing act for many families. Lenders often look at your overall income compared to your current debt and family size to ensure that you will be able to make your monthly payments and not default on your loan. If you are pregnant, you are in a position where your financial situation may change rapidly after the birth of your baby. However, should you reveal your pregnancy to your mortgage broker? Below are three things to consider if you are applying for a loan while you are pregnant.
Legally, You Are Not Required to Reveal a Pregnancy
Under federal law, it is a violation for a mortgage broker to ask if you are pregnant or planning a family. However, it is still common for many brokers to ask this question. If you are asked about your plans for a family, you can simply state that you are not required to answer that question and your broker should move on.
Your Loan May Be Affected If the Baby Is Born Before Your Loan Is Secured
While your broker cannot ask about your plans to create a family, they can ask how many current dependents you have. Your answer to this question will be considered when determining your monthly disposable income. Since purchasing a home can take a long time, you may be asked to confirm your financial details several times during the process. If the baby is born before your loan is secured, it may change the amount you are eligible to receive. If you think your baby will be born before you close on your home, consider letting your broker know so they can adjust your loan amount ahead of time so there are no surprises.
Make Sure You Can Afford Your Loan After the Baby Comes
As with any loan, it is important that you only request an amount that you are sure you will be able to afford, even if you are approved for more. You should carefully consider how a newborn will affect your budget and whether you will be able to meet your financial obligations while on maternity leave if you plan to take it. For example, you may want to only claim one income when applying for a loan in case your second income is reduced due to child care responsibilities.
If you are pregnant, you may not want to tell your broker. However, it is important that you negotiate a loan that you will be able to afford with your changing family size and obligations. For more information about home loans in your area, talk with your mortgage broker today.