Is This Your Situation: Worried That Job Hopping Could Hurt Your Loan Chances?

Thinking of switching jobs, or had a recent change? This can affect your ability to get a mortgage. With many homeowners staying in jobs for shorter periods of time vs our older counter-parts, it is good to plan when to make that job hop if you are also considering buying a home. 

Ready to jump to a new job? That’s great news. But if you’re also applying for a mortgage loan, you might want to put a hold on that job-hopping until after your loan closes, especially if you are planning to take a job in a new industry.

Changing jobs right before you apply for a home loan could hurt your chances of actually qualifying for it. That’s because lenders might worry that you’re more likely to lose that new job than you are a position you’ve held for two years or more.

In general, lenders want to see that you’ve worked in the same job for at least two years. Barring that, they prefer working with borrowers who have at least worked in the same occupation for at least that long.

The jobs rule isn’t a hard and fast one. Different lenders will view your job hopping in a different light. But if you want to give yourself the best chance of securing that mortgage loan, resist the temptation to jump to a new employer until after the closing papers are signed and the financing for your new home is finalized.

For even more information about what lenders are looking for and how to score a mortgage loan, give me a call today.

Modified by: Theresa Tscheschke Gunal ; Used courtesy of Jasser Ryan Go, Home Actions, LLC