When you’re applying for a mortgage, the goal is to make yourself look as stable and dependable as possible. Banks want to make sure you’ll be able to make your monthly payments and change tends to scare them. Even if you accept a higher paying job, the banks might see that as a greater risk of getting fired because you’re in a new and unfamiliar role. It sounds a bit goofy, but it doesn’t mean you can’t get approved for a mortgage and change jobs at the same time.
All you have to do is prove this new job offers plenty of financial stability. Typically, lenders won’t sign off on the loan until you’ve worked in your new role for 30 days, so make sure to budget an extra month of time. They’ll also want to see an offer letter and possibly a paystub once you have one.
Avoid Red Flags
Making a job change within the same industry will raise considerably less red flags, as will a promotion at the same company. Trying to make a major career switch or accepting a lesser paying job will make things much harder.
Buy Before You Leave
One, potentially risky, option is to buy your new home before you put in your two weeks’ notice. Lenders will verify employment during the application process and right before closing. So as long as you maintain the same employment during both checks and don’t tell your current employer that you’re leaving, you should be fine. Just make sure there’s no clause in the loan agreement that asks about plans to change jobs. This strategy might also put you in an awkward position if someone from HR asks why you’re moving.
Getting a mortgage while you’re changing jobs isn’t impossible, but it does add a few extra variables. Lenders shouldn’t give you any trouble as long as you’re sure to account for those variables.