Changing Jobs During the Mortgage Application

You never know when a new employment opportunity will come along. It may have perfect timing, or its timing may be less-than-ideal…like when you’re in the middle of applying for a home loan. If you’re thinking about changing jobs but are also planning to apply for a mortgage loan, you may want to delay the former.

While job changes aren’t necessarily a red flag to lenders like OVM Financial, your employment history and current income are the bread and butter of your mortgage loan approval and the process to get a mortgage. In other words, if you don’t have solid employment or income, a loan officer may not approve your application. However, there are some exceptions, so if you think you may change jobs during the mortgage application process, read on for more details.

Where to start

First, discuss your new employment plans with your loan officer, especially if you’re in the midst of applying for a home loan. Your loan officer will likely want more information about your potential new position, including employer background, your new pay or salary, and your anticipated start date.

When is it okay to change jobs?

If your current employer is promoting you or you’ve accepted a higher-paying job elsewhere, your mortgage application approval may be safe. Similarly, if you’re an hourly or salaried employee transferring to a comparable job with corresponding pay, you’ll likely be alright. Of course, OVM Financial would have to be sure your new job and employer are stable.

Additionally, if you are transitioning from commission-only or self-employment to an hourly or salaried position, OVM Financial can typically use your new income immediately for qualification.

To ensure all goes well with your application, keep your loan officer in the know.

When is it not okay to change jobs?

Should you want to completely change career paths, you could run into more challenges with mortgage loan approval. The same is true for accepting a new position with significantly less pay and benefits or working in a position that doesn’t offer steady income, such as one that is commission-based.

And since OVM Financial requires at least a two-year history of 1099 income for self-employed applications, it’s also not a good idea to transition from a stable hourly or salaried position to self-employment or independent contracting right before or during a mortgage application.

For more information about changing jobs during the mortgage application process, reach out to our OVM Financial experts, who can help you plan accordingly. You can also browse our website for helpful articles about application fees for mortgages and how long does a mortgage pre-approval take.