With what is going on in the world today, if you catch my drift, many people are deciding to change jobs. There are many different reasons for people to do this. If it is important to you and makes sense for your family, we are behind you one hundred percent! We would like to recommend that if you are in the process of applying for a mortgage, to wait to change your job either before you apply for your home loan. If you change your job while you are in the process of purchasing a home, you may find yourself in a tough situation. When applying for a home loan, your job status is always checked…is your job reliable, stable, and likely that you will continue with it in the future? Also, it would cause less issues if your change of job is an upward move with more money, benefits, etc. If it seems like your new job is not helping you gain anything, your loan application may have some red flags on it.
In most situations, you need a minimum of two years at a job. If you are there for less than two years, your employment history will be looked into further. For example, how frequently you change jobs, if you are unemployed for long periods of time, etc. Some mortgage lenders will look at some jobs as unacceptable and possibly jeopardize you getting approved for a mortgage. These types of jobs would be a job in a completely different field, or switching from a W-2 employee to a 1099 employee, to name a couple.
We know that there are unforeseen circumstances that happen and there may be no other option but to change your job, but if you can avoid changing jobs while in the middle of a mortgage application, we highly recommend it. It would make everything go much smoother!