I just switched jobs, how does that affect my ability to qualify for a loan?

Great question! This comes up very frequently. When you’re applying for a mortgage, most mortgage companies are going to require two years of stable job history explaining any job gaps from one job to another as well as doing a full two year history showing all dates of employment began and when employment ended during the full 24 months. If you change jobs, and you’re going from one industry to another industry you’re going to have to explain the change and why it took place and how your financial situation is battering because of the job change. As long as it’s just a job change from one W-2 position to another, you should be okay trying to qualify to buy a home or refinance a mortgage.

Where people get into trouble is when they switch jobs and their actual employment status changes that is going from being W-2 to going self-employed. This is an automatic 1 to 2 years timeframe it will take you to show income from being self-employed for the purposes of getting a mortgage. if you go from being self-employed to w2’ed, tenured and a venue to show either a pay stub and/or combination of the paystub and an offer letter showing what the income is going to be coupled with allowing the mortgage lender to do what’s called the verification of employment with your current employer. If you’d like to learn how potential job transfer or change might affect your ability to get a home loan, contact Scott@sonomacountymortgages.com today!

Posted in:

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

Here's a strategy to buy a home and set up a future refinance

Here’s a strategy to buy a home and set up a future refinance

For families looking to purchase a home, good news has arrived interest rates are slowly…

How your financial experience might hinder your ability to get a mortgage loa

How your financial experience might hinder your ability to get a mortgage loan

Getting a loan to buy a home is a maze of questions, examinations, along with…

Here’s how to buy a house even if you think your income may not qualify

Here’s how to buy a house even if you think your income may not qualify

If you’re looking to get prequalified to buy a home, one of the main elements,…

Scott Sheldon's The Mortgage FIles Blog

FHA Mortgage Insurance Premiums reduced by 30 basis points-what this means for consumers

For folks looking to purchase or refinance a home with the FHA Loan, the Federal…

View More from The Mortgage Files:

1 Comment

  1. […] your ability to pay (and therefore determining how much house you can afford), a lender will calculate your average income based on your pay from the past 24 months. It’s pretty straightforward if you’ve had the same […]



begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!