Please advice:
I am hoping to get ITA soon at 435, If I resign from my job and after applying for PR I am not working anywhere, lets say I get ITA in Feb and my notice period also ends in Feb, so I won't be working anywhere at the time of filing application which usually takes a few months. I need to spend a few months with my folks.
Can my application get rejected due to unemployment during the verification process?
I would recommend that you not quit your job yet. Since your score is currently 435, it would be safer if you could at least wait for the first draw of this year before deciding whether you should quit your current job. I'm advising that because no one can tell for sure when people at that range will receive their ITA.