FAQs About Applying For A Mortgage With A New Job
Let’s take a look at some of the most frequently asked questions about how your employment status affects your ability to qualify for a mortgage.
Can I get a mortgage without a job?
You can receive a home loan if you’re unemployed. There are extra steps you’ll need to take to improve your chances of approval. Be prepared to document other consistent sources you have such as alimony payments, child support, rental property income, etc. You can also leverage liquid assets as an additional source of income.
Talk to a Home Loan Expert about your specific situation and use our mortgage calculator to get an estimate of your monthly payment.
Can I get a mortgage with a part-time job?
You can be approved for a mortgage with a part-time job or seasonal work as your main source of income. Your lender may not require you to show 2 years of work history, but you do need to gather enough evidence to show you’ll have a long-term flow of income. This evidence can include a history of employment and the number of hours you work per week.
You should confirm with your lender you’ll be able to qualify for a mortgage with a part-time job, as each lender handles those circ*mstances differently.
Can I change jobs before applying for a mortgage?
You can change jobs before starting your mortgage application process. However, it’s a good idea to discuss with your lender how they feel about recent job changes before applying for a mortgage.
You shouldn’t see serious issues if your new position is in the same field of work, offers an improved salary and you have a work history longer than 2 years.
Can I quit my job before the closing process is over?
It’s possible your lender will not approve your mortgage loan if you choose to quit your job before closing on your house. It’ll hurt your mortgage approval if you don’t have proof of stable income to make monthly payments.
There’s less risk if you choose to quit a part-time job as long as the job isn’t the income stream you’re using for your loan qualification. We recommend avoiding changing jobs before your home loan closes to avoid putting your loan at risk. If you do end up changing jobs, you must let your lender know so they can verify your new income.
How long after closing can you switch jobs?
Discuss with your lender if you plan to switch jobs after closing on your home. They need to know you can show proof of stable income before approving your home loan. There’s less risk of loan delay if your new job is in the same industry and has a similar or improved salary.
Most lenders conduct a verification of employment within 10 days before your loan closes, during which your current employer will be contacted to verify your employment.
