One of the most challenging tasks you may end up with at one or two points in your life is when you have to change jobs and aim to get a mortgage at the same time. It is a fact that whenever you change from one job to another, you are likely going to affect your loan approvals. Even if you are shifting from one job to another with an equal or possibly higher income, you will notice some minimal shift in your loan approval status. What lenders are most interested in, however, is whether or not you can pay back the loan. You need to ensure that you consider how that new job can affect your mortgage acquisition.
What to expect when you are changing jobs before you get a mortgage
Lenders will most likely not have any concern if you are shifting to another job that will probably earn you more income than your previous one. You may have gotten a promotion or moved to another better department; all of these are always looked at favorably.
Before you can earn a loan approval, however, you will have to work in your new job for at least 30 days, and also should be able to prove to the lenders the longevity of your stay in your new role before you can get loan approval.
How you can get a mortgage with your new job
You need to steer clear of any jobs that will not make any financial sense if you move to it. Why should you move from a full-time job to be a contractor? Or from a well-paying job to an equally lateral or even less paying job? There is simply no sense in that. When you are one person who has an employment history of moving from one job to another, you may harm your chances of getting a loan as lenders can view this as some red flag, that you may have problems maintaining a steady income.
You also need to cover long employment history gaps. You will have a better chance of acquiring a mortgage if your unemployment period is six months or less.
How do you get that home loan when you are relocating?
If that new job you are about to embark on requires you to relocate, then you need to make sure that you have made all the living arrangements before you move. You may even decide to stay in a rental for the first 30 days in your new job so you can provide the lenders with that first pay stub. That may be the solution you can use without having to stress yourself out too much. This way, you are also learning about the new area’s real estate market and what can be best for you when you are ready to make that move.
You can also decide to purchase a home in the new location before you choose to give notice to your current job. This can ensure you have a smooth move to your new location.
Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!