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Will Switching Jobs Kill Your Chances Of Getting A Home Loan ?

Here is the thing when trying to buy a home you do not want to do any moving around if you happen to be in escrow, especially when it comes to the job, because it may make the lender uncomfortable in giving you the home loan.  Which is the last thing you want to do especially after all the hours you put in on looking at all the homes for sale and submitting offers etc.  But lets say you are trying to buy a home some time this year.  But you have job opportunities or thinking about starting your own business etc.

If you have an opportunity to work some where else as long as its along the same lines of work you will be okay.  Typically the lender wants to see 2 year job history along the same line of work or at least as closely related as possible.  But you can also be given that 2 year credit lets say if you were working and going to school for nursing and now you are a nurse.  You will be given credit for those two years as well.  Or if the new job you are landing is considered an elevation of job stature.  You went from being a janitor for example to a correctional officer, you will stay maintain the 2 year job history.

Now lets say you have been cook for the last 10 years and you decide to open your own business.  You will have to two wait two years minimum and what ever you report is what you can use to qualify for a loan.  Does not matter if your business makes $500k but you only report $50k then that is what is used to figure out what you can qualify for.

Another scenario, lets say you are a car salesman and you are paid W2 you get set hours, and set pay but now  your company is going to give you unlimited opportunity to make what ever you want because now you will be 100% commission , 1099 independent contractor.   Well then you will now be considered self employed, as if you were starting your own business.  Again you will have to wait at least two years from the time you went from being a w2 employee to a 1099 independent contractor even if you have been doing the same line of work for years.

So you can switch jobs without ruining your chances of getting a home loan, and buying a home this year.  If you are ever unsure just shoot me a line or ask who ever you plan on getting your loan through if the job change, may kill your loan or not.

Good Luck

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