Once you set the ball in motion on your mortgage application, one of the worse things you can do is change jobs. Applying for a Mortgage? Don’t Change Jobs!

Change jobs during your mortgage process

If you change jobs during your mortgage process you risk even qualifying for a loan. Lenders want to see stability and if you jump around from position to position, they see you more as a risk than a dependable “bill-payer”.

There are exceptions, however, especially if you simply get promoted or change positions in one industry. Simply gaining a promotion or a new title in an established business usually will not affect your chances of getting a loan but it can be determined on a case by case basis.

If you switch jobs but are still in the same line of work, that will depend on the unique circumstances. For instance, if you are an insurance broker and you switch from one company to another but still sell insurance, your risk is far less than had you switched gears and gone into a new profession altogether.

Change your line of work

If you change your line of work say from a nurse to a lawyer, you are required to have 2 years on your new job in order to qualify for a conventional loan. FHA and VA loans are much more lenient.

If you go from a salary position to an hourly position you now need 2 years to prove what your income will be on average. Hourly positions are averaged over 2 years unless you are guaranteed a certain amount of hours such as 40 (full time) or 20 (part time). Most hourly positions have varying hours

If you are salaried and receive a bonus or commission every year and you change jobs you can no longer use your bonus or commission until after 2 years and you have proven what you will average.

If you are hourly and you go salary or you are salary and you stay salary, in most case, you will be fine unless your income decreases. However you cannot use any bonus or commission because of having to wait 2 years to average the income.

Again, each situation is unique so if you are in the midst of an employment transition, talk to me about what your options are and what may be a better way to go about getting a home loan or call me at (916) 847-7263.