Changing Jobs and Still Want to Buy a House? Can it work?
Today’s real estate tip deals with how to still qualify for a loan in the middle of changing jobs or starting new companies. With a lot of people out there changing jobs, losing jobs and starting new careers, I came across an interesting article that addresses what you can do to still buy a house even though a new employer is in the works. Can you still buy a house if you have decide to start your own business?
The answer depends on how the action taken — changing jobs or starting your own business — will impact the way a mortgage underwriter views your income.
Underwriters look at three dimensions of a borrower’s income: the amount, which must bear a reasonable relationship to the borrower’s payment obligations; the documentation for the amount, which is the evidence that the amount is what the borrower says it is; and the stability of the amount, which says that the indicators the amount reported will continue in the future.
Changing Jobs: Changing jobs may affect the underwriter’s judgment about income stability. Ordinarily, an underwriter wants a borrower to be on the job that generates the income used to qualify for two years or more. Other sources of income, such as financial assets and rental property, are subject to their own rules.
A job change does not necessarily imply a reduction in income stability. If you change your job for … Continue Reading