Changing jobs is a natural part of a long and eventful career. But if you’re trying to apply for a loan here are some tips to make sure you keep your job and get into a home.
First, most lenders will want to see working applicants who have been in the same field at least two years. The reason: A solid two-year work history is a good indicator of one’s financial stability.
Here are some common employment scenarios and how they may play out with lenders:
- In college, you studied a particular field and now have a job in that field. This scenario would be acceptable in nearly every mortgage loan program as long as there’s documentation.
- You’ve just changed jobs within the same field but are earning less than before. This scenario would be acceptable, and the lender would use your current income to see if you qualify for loans.
- You’ve just changed jobs—and career field. This scenario would be questionable, and your ability to qualify would depend on how much the lender was willing to help you.
- Your new job situation is temporary. This income would be averaged as if you were a salaried employee who switched to impermanent income. (realtor.com)
What paperwork you need
Lenders want to see documentation on your new job and income. Paperwork for a new job should be highly detailed and include your new title, new role and salary. More specifically, mortgage companies expect paperwork with your:
- Start date
- An offer letter with compensation
- A pay stub
- Verbal confirmation of your employment
If you are already in process of buying a home
Don’t change jobs in the middle of the process it will causes major problems. If you foresee a job change make the switch job prior to buying a home and try to a have a few months of pay stubs under your belt prior to applying.
If you feel like your career situation is in a stable position contact us for a FREE loan quote to see if we can get you into a home. This article was written by Clint Carver, Loan Officer.
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