Two huge stressors in life are moving and changing jobs. Trying to do both at the same time can be very overwhelming. However, it is not impossible.
Many lenders will work with someone who is changing jobs, as long as they are moving to a position that puts them in a better spot financially. Communication is a must in a situation where there are many cards in play.
Changing Jobs
There are instances where a potential homeowner is going through the process of getting a mortgage. They are faced with a new job offer and an uneasy feeling that their lender will no longer provide them with a loan. While it seems scary to tell a lender about a job change, it is likely they will still work with someone in this situation.
Anyone changing jobs within the same profession will have an easier time. A promotion or move to a new company location is also no problem. As long as the new job has better pay and benefits the bank will see it as a smart move on the borrower’s part.
If making the change before buying a house, the lender will still need proof of income. At least one month of pay stubs will need to be provided at the new job. An offer letter stating the salary promised may also be required with a pay stub.
Problems in Job Changes
While a person is free to change jobs while talking with a lender, that does not mean all job changes are beneficial. Taking a job that pays less or has less in benefits is not a smart move. A lender may be wary of loaning to someone who is changing their income drastically. Moving out of a full-time job to a freelance job or major profession change may also make lenders nervous.
The most important thing when talking to a lender is to show consistency. A person that has changed jobs frequently is going to have a much harder time finding a lender that will work with them. Frequent job changes and long duration without a job are major red flags for a lender. An exception to this is if these unemployed times are due to school or military service.
Always disclose information that will prove that the work history is consistent, even though it may look spotty.
Relocating
Buying a new property due to a job relocation can quickly become a complicated process. Using an extended stay hotel or renting for a short time can make it much less stressful. This allows for time to sell a previous property and purchase a new one without worrying about where to stay during the process.
It is possible to sell a house and purchase one at the same time. While it is possible, it is hard. Sometimes one side of the deal falls through and one end goes smoothly. Situations like this can leave someone with a sold house and nowhere to move or with two properties to pay for.
If having two properties is within a person’s means then it is a much easier process. Moving into the new house and then selling the old property is much easier.
Some relocation deals offer a “Guaranteed Buy Out.” This is where a person may try to sell their house and if it does not sell the company will buy the property for the appraised value.
Changing jobs does not stop someone from buying a house. Anyone that is already in the process of buying a house should discuss a job change with their lender before accepting the job. Any problems the lender could have can be addressed before it stops them from providing a loan. Most lenders are willing to work with someone who is changing jobs within the same profession if they are moving to a more financially beneficial position.
