as long as it is short term you should be fine. you have the reserves, so that should not be an issue. the employment verification usually only asks are you employed there and myabe what your salary is. as long as you are still employed they USUALLY won't care that you are out sick.

that's good news, thanks. i suspect even my temporarily reduced salary would be okay for this mortgage. at least i really hope so. they will see the reduction of they request pay stubs but they will also see what i have earned so far this year. it really makes me nervous to have this happen at this moment in time

splinky...you should be fine. I ran into a similar situation a few years back when getting a loan was much more difficult. The bank just needed a letter from me explaining my short-term disability issues. Loan came through on schedule and closing went fine. Good luck.

novahomesick,
thanks. i hope you recovered well. did you tell the bank or did they ask you about it as they went through their due diligence? just want to do the right thing but not make a problem for myself. Thanks again for the encouraging info.

The bank will review your credit and employment right before closing.

so it's reasonable to wait for the bank to raise it if it is an issue for them?

I think that I might bring it up so that everything goes smoothly at closing.

Terriks, thanks. I plan to disclose, just don't know at what point it would be most appropriate. At this point it's not even clear that we'll be able to get to contract with all the seller's attorney's delays. Once I know that we could move forward, I guess that's the best time to disclose to the bank so that they can gather gather any additional information or assurances they require.

I was on short term disability for a period of about 6 months last year. We decided to take the time I was off to find our home. Everything went through before I got back to work and I disclosed I was on disability. It was only a month after we closed that I was back at work though.

Everyone,
Thanks so much for the good information. I feel much better about things. I hope to be back at work shortly before or just after closing. Good to know that this can possibly work out, I would hate to lose this opportunity because of bad timing of an illness. Thanks again
S

What is there to disclose? You are still employed by the company, right? That should do it. You don't qualify based on your health. I had a contract in on my previous home and the buyer got fired and didn't disclose. Yep, you guessed it. The deal went south faster than a gaggle of geese heading out for the winter.
You'll be fine!

Yup, still employed and bonus time is fast approaching. :-)

Sorry to be the dissenting voice here. But the mortgage application you probably signed stsates somewhere in all that language that you will inform your lender of any changes to employment, assets or credit before closing.

Borrowers are typically not permitted to close their loans if they are on short-term or temporary disability. From a lenders perspective, do you now qualify on that smaller income? When does the temporary disability income stop? Will you be able to go back to work before that income stops? Some of those questions can not easily be answered.

Most borrowers are required to close their loans when they are back working their full time position. And provide a current paystub to verify that. We see this a lot with maternity situations.

The bank says there's no problem with my being on temporary disability and that it's fine to schedule the closing prior to a return to working full time.