What happens if you have to change jobs while you are in the middle of getting a mortgage? Lenders typically recommend that you do not make major changes if you are in the middle of trying to get a mortgage, because lenders look for continuity, and will have to re-verify information if major changes are made. However, many folks do not have a choice: sometimes a new opportunity comes up, or are forced to change jobs.
The good news is that lenders can work with you, and use the new information (income, salary, etc.) from your new position for your qualifying. This process can be started with just an offer letter, so the terms (salary, start date, etc.) are known to get the process started. Typically, at least one pay stub will be required before closing to show that you have started working in the new position.
With some jobs, this might be a problem if your wages fluctuate. If you started a position where you are paid by the hour, you won’t have a problem since your income will be predictable. However, jobs where the wages fluctuate, such as commission-based positions, might be more difficult to determine your future income level. In these situations, it is best to have a good track record to better predict your income level, and a job change could put you in a situation where it is more difficult to obtain a loan.
If you are thinking about taking a new job while you are in the process of getting a new mortgage, be sure to talk to your loan officer. They can go through the details of the job and income change with you, and determine how that will affect your ability to qualify for a loan. By going over your unique situation, they will be able to advise you on your best options for getting a mortgage, and finding the best way to do it. If you have any questions contact Pete Thompson, your Chicago area mortgage guy, at (630) 481-7188 or visit www.PeterThompson.team.