How Changing Jobs Can Impact Your Home Search
9.16.2022 | Category: Homebuying
If you’re thinking about changing jobs, and you’re looking to buy a house, there’s a lot you should consider before you accept the offer. Whether the opportunity is with a new organization or within your existing company, or perhaps a new venture on your own, there are many scenarios where changing jobs can dramatically impact your home search.
The good news is that your employment history is only one factor that lenders look at when deciding to approve a borrower for a mortgage loan. Other factors include how much a borrower has saved up for a down payment, a borrower's credit history, how much is looking to be borrowed and current interest rates.
We look at three different scenarios to explain how prospective purchasers can navigate the home buying process when changing jobs.
How changing jobs with another company impacts your home search
As part of the loan application process, lenders will review employment history among several other factors. If an applicant is amid a job change, it’s not a deal breaker, but lenders might inquire about specifics like income, if any contract might be signed or if the new position requires relocation.
If a lender needs to verify with two separate employers it also might take a little more time for the loan to be approved but as long as your employer can verify your income, there should not be a reason to be concerned that changing jobs with another company would automatically result in a loan denial.
How accepting a new position within your existing organization can affect your home search
If you’re considering a position with your existing employer but in another area, you’re in luck. In most cases your loan is treated just as if your employment history has stayed the same. A lender will still verify employment history and income but it should not cause any delays to having your mortgage loan approved.
If the new position comes with a bonus or other ancillary compensation, be sure to let the lender know so that the added income doesn't raise questions when the loan is in underwriting.
How leaving a position to start your own business impacts your home search
Starting your own business is a monumental milestone for any career driven individual. However, because there is immense assumed risk with owning your own business, borrowers should be sure to have a strong financial backing before applying for a home loan.
With that said, small business owners buy homes every day. Be sure you keep excellent records of your income and expenditures, save diligently for a healthy down payment and keep up your positive credit habits.
Bottom line: You can still buy a home with a new job
Changing jobs or careers can be a significant life-changing event most people don’t take for granted. And often with a job change can come relocation to a new area. Lenders have a significant amount of experience working with home buyers who might be changing jobs so be upfront about your situation to help keep the process smooth.
Luckily, simply getting a new job or receiving a new title doesn’t rule out qualifying for a mortgage.
When you’re ready, get preapproved for a mortgage loan with a lender who has experience. Contact a Mutual of Omaha Mortgage loan officer or give us a call at 1-800-24-RATES