How to get a mortgage and change jobs

Fall buying season is still here! If you are considering a move while transitioning jobs, there are a few notes that you need to take into consideration. If you are accepting a new job position, or moving positions within your company, take the time to consider how it may  hinder your mortgage acquisition. Lenders need to know that you’ve had a reliable, steady income that will  be ongoing for the next several years. It is a known fact that changing jobs can affect your loan approval. As long as you’re moving from one position to another that has the same or higher salary, and you are able to provide documentation of income history, changes to your loan approval should be minimal. The most important thing for lenders and underwriters is to ensure that you will be able to repay the loan.

Before you change jobs what to expect:

If your new job earns better pay and is in the same industry, your lender will likely not have a concern. Even lateral moves of increased salary are sensible business decisions that shouldn’t impede your loan acquisition. At America’s Moneyline, we will likely want to ensure the longevity of your new role and confirm your new salary. Expect to work in your new role for at least 30 days before earning the approval. Typically, you’ll have to supply your first pay stub and provide a letter from your employer confirming your salary.

Mortgage approval red flags:

If you are considering purchasing a new home, avoid transitioning to a job that makes less pay, is not full-time and does not show a major industry change. Employment history showing frequent career moves can be a red flag for lenders!

Before you make changes, consider reaching out to your America’s Moneyline loan officer. They will be more than happy to advise and give suggestions on how to make your housing transition as smooth as possible.