Getting A Mortgage With A New Job: What To Know

Hitting a life milestone is exciting, like getting your ideal job at your dream company. However, it can get complicated when you find your forever house at the same time.

Getting a mortgage with a new job can be complex, but this guide will inform you on the right steps to take to have a successful mortgage approval.

Mortgage lenders like to see a 2-year history in your current job position. However, it’s possible to be given the green light without that 2-year history if you’re transferring into a new role.

We recommend you discuss your job situation with your lender before starting your loan application. Provide your lender with as much verbal and physical proof as you can to exhibit your qualifications for approval.

There will be extra steps you need to take if you’re thinking about switching jobs while house hunting. If possible, it’s best to wait a while after closing on your home and receiving loan approval to change jobs, but sometimes life happens.

Items To Present To Your Lender

Here are some things to consider having on hand that’ll increase your loan approval odds:

• Offer or title change letter: Present a letter of intent from your new employer if you just got a new job. Present a title change letter if you’re staying at the same company but are being promoted.
• Verification of employment (VOE): Similar to an offer letter, your lender may require a verbal or written VOE from your new employer.
• Most recent pay stub: Have your most recent pay stub on hand to show evidence of current employment.

Employment isn’t the only compensating factor that weighs into successfully qualifying for a mortgage, although in most cases you’ll need to provide proof of at least 2 years of employment.

Here is a list of other factors that your lender will take into consideration:

• Healthy credit score
• Low debt-to-income ratio
• Robust cash savings
• Investments or assets
• Bonus or commission pay
• Down payment percentage

Let’s take a look at some of the most frequently asked questions about how your employment status affects your ability to qualify for a mortgage.

Can I get a mortgage without a job?

You can receive a home loan if you’re unemployed. There are extra steps you’ll need to take to improve your chances of approval. Be prepared to document other consistent sources you have such as alimony payments, child support, rental property income, etc. You can also leverage liquid assets as an additional source of income.

Talk to a Home Loan Expert about your specific situation and use our mortgage calculator to get an estimate of your monthly payment.

Can I get a mortgage with a part-time job?

You can be approved for a mortgage with a part-time job or seasonal work as your main source of income. Your lender may not require you to show 2 years of work history, but you do need to gather enough evidence to show you’ll have a long-term flow of income. This evidence can include a history of employment and the number of hours you work per week.

You should confirm with your lender you’ll be able to qualify for a mortgage with a part-time job, as each lender handles those circumstances differently.

Can I change jobs before applying for a mortgage?

You can change jobs before starting your mortgage application process. However, it’s a good idea to discuss with your lender how they feel about recent job changes before applying for a mortgage.

You shouldn’t see serious issues if your new position is in the same field of work, offers an improved salary and you have a work history longer than 2 years.

Can I quit my job before the closing process is over?

It’s possible your lender will not approve your mortgage loan if you choose to quit your job before closing on your house. It’ll hurt your mortgage approval if you don’t have proof of stable income to make monthly payments.

There’s less risk if you choose to quit a part-time job as long as the job isn’t the income stream you’re using for your loan qualification. We recommend avoiding changing jobs before your home loan closes to avoid putting your loan at risk. If you do end up changing jobs, you must let your lender know so they can verify your new income.

How long after closing can you switch jobs?

Discuss with your lender if you plan to switch jobs after closing on your home. They need to know you can show proof of stable income before approving your home loan. There’s less risk of loan delay if your new job is in the same industry and has a similar or improved salary.

Most lenders conduct a verification of employment within 10 days before your loan closes, during which your current employer will be contacted to verify your employment.

Although it’s possible for borrowers to qualify for a mortgage with a new job, you might find the process slightly more complicated depending on your lender’s requirements. It’s likely you’ll need to provide your lender with additional paperwork, including your employer’s offer or title change letter, verification of employment and your most recent pay stub.

Regardless of your current employment situation, it’s a good idea to meet with your lender early on to discuss what you’ll need and the steps you should take.

Are you about to embark on the home-buying journey? Take action and start the mortgage application process with the Home Loan Experts at Rocket Mortgage^®.