Can a bank deny a mortgage loan because I am on maternity leave even though my income was satisfactory before I went on leave?
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Can a bank deny a mortgage loan because I am on maternity leave even though my income was satisfactory before I went on leave?
Asked on December 27, 2011 under Real Estate Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, a lender for whatever reason that it may make can deny any person a loan to buy a piece of real property. Lenders are private entities and they have business decisions to make in order to evaluate the credit worthiness of a person applying for a loan.
In your situation there probably is a belief that since you are on maternity leave that there is a good chance that you may not go back to work for a long period of time. If that happens, there is less income that you would be able to earn to service the debt loan on the home you wish to buy.
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