Getting a mortgage during a job transition may not be a deal breaker for mortgage lenders. In today’s constantly evolving society, it’s difficult not to change jobs as you grow. Whether you’re moving to a new city or simply changing employers, there are several ways to get approved for a loan that best fits your home buying needs. Check out our suggestions— and make sure to keep your lender abreast of all potential job changes during the mortgage process!

1. Haven’t Started The New Job: If you have not yet started your new job, don’t worry! You can still get approved for a mortgage. Within the past ten years, mortgage lenders have begun to accept offer letter loans for professionals. Through this new application, lenders acknowledge that a job offer counts as proof of income; however, there are five criteria that must be met in order for you to qualify. More specifically, to use “offer letter income” you must complete the following:
   • Provide a non-contingent offer letter
   • Provide evidence that the job start date is within 60 days of the mortgage closing date
   • Show that the purchase is for a primary residence
   • Prove that the home is a detached single-family residence, town home or condominium
   • Prove reserves to pay mortgage payments plus real estate taxes and homeowners insurance during the gap between closing and the start date, plus an additional 3 months of reserves

2. Accepted A Job With Higher Income: In most cases, mortgage lenders do not consider changing employers for a higher income as a problem. Keep in mind that you may need 30 days on the job prior to being able to complete your mortgage process. In other cases, your lender may not view your job change as “safe” for their lending purposes. For example, switching from salary to commissioned payments may not qualify as a higher income job. It’s therefore important to keep your pay structure in mind when switching jobs and applying for a mortgage.

3. Changed Industries: Getting approved on a mortgage while you switch industries depends on a case-by-case basis. Lenders will look to see that you are accepting a job of the same caliber, rather than transitioning to work fewer hours with a large pay cut. When this happens, it’s best to talk to your local lender and find out what type of loan would work best for your situation.

No matter which job transition you are going through, there is almost always a mortgage option for you—you just need to constantly keep your mortgage lender updated! Remember that failing to communicate any change in job to your lender will cause many issues in your loan approval. This is easily avoidable, as the key to getting approved may simply be communication. For more information on how to get approved for a loan during a job change, or for additional home financing options, contact one of our mortgage lenders today.