He and an agent looked at houses. He made an offer, then negotiated a price of $190,000, which meant he'd need a $152,000 loan.
Warned about trying to get a mortgage in between jobs, Sapovits planned to stay with his Philadelphia employer until early July, so he tried to arrange settlement on the New York house in late June. The seller had some health issues, though, delaying closing until July 20.
With a date set, Sapovits e-mailed the lender, but received no response. The loan officer he dealt with contacted Sapovits, said he was with a new lender, and asked if he was willing to move, too.
Too many red flags were attached to the new lender, so Sapovits asked his agent to recommend someone who was familiar with the market. "I had concerns about some of the Internet lenders and their ability to close the deal when they were not local."
He was quickly approved for a mortgage. The loan officer noted that his new employer, with whom he would start Aug. 16, would be supplying employment verification when his credentials were completed in July.
When the lender, Wells Fargo, sent a letter approving his mortgage, it required 30 days' worth of pay stubs from the new employer. But the loan officer said the last two stubs from his Philadelphia employer would be enough.
Sapovits' new employer provided a letter from the chief executive officer and other information Wells Fargo required.
Instead, the lender wanted a "fully executable nonbinding employment contract." During the real estate boom, the letter would have been enough, but no longer.
It would take a while to obtain a contract, and Sapovits had to delay his move and the settlement date.
He tried to appeal the letter's rejection as proof of employment, but after finally reaching the loan officer after some delay, he was told even the contract might not be sufficient.
