Should I switch jobs if I want to buy a home?

Answer

Most mortgage lenders require you to have a steady job for two years before they’ll approve you for a loan. They’ll ask you for proof of income, which they use to determine your debt-to-income ratio. They look at your current debt obligations plus what your mortgage will be. They then compare that debt with what you earn. This tells lenders whether you can afford a mortgage and how much they’ll lend you.

A better job

If you are offered a better job and will make more money, you might think that this presents no problem. After all, if you qualified for a mortgage loan with the smaller salary, you certainly qualify with a larger one, right? Lenders don’t see things that way. You have no history at the new job, so there goes that two-year history that lenders like to see.

Even if the lender is okay with the new job and will still approve your mortgage, at the very least, your closing could be delayed. Your lender will need to verify your new job, and the lender will want to see some pay stubs.

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A change in how you’re paid

Another job move to avoid is going from salary to commission/bonus. You won’t have a history with that move, either, which could kill the deal.

Change position

What you probably can do without any trouble is changing your position at the company you’ve been with. As long as your salary is the same or more than what it was when you applied, your lender should be fine with that move.

Conclusion

It’s not a good idea to change your status between the period you applied for a mortgage and the closing date. It’s best if you can wait to start the new job until after you close on the house.

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