{"id":4878,"date":"2021-01-20T02:13:27","date_gmt":"2021-01-20T02:13:27","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/?p=4878"},"modified":"2023-08-24T07:02:36","modified_gmt":"2023-08-24T11:02:36","slug":"mortgage-with-a-new-job","status":"publish","type":"post","link":"https:\/\/dreamhomefinancing.com\/mortgage-with-a-new-job\/","title":{"rendered":"Getting a Mortgage with a New Job"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4885\" src=\"https:\/\/dreamhomefinancing.com\/wp-content\/uploads\/2021\/01\/mortgage-with-a-new-job.jpg\" alt=\"mortgage with a new job\" width=\"600\" height=\"400\" data-pin-description=\"mortgage with a new job\" srcset=\"https:\/\/dreamhomefinancing.com\/wp-content\/uploads\/2021\/01\/mortgage-with-a-new-job.jpg 600w, https:\/\/dreamhomefinancing.com\/wp-content\/uploads\/2021\/01\/mortgage-with-a-new-job-300x200.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<h2 style=\"text-align: center;\"><strong><span style=\"color: #000000;\">Getting a Mortgage with a New Job<\/span><\/strong><\/h2>\n<p><span style=\"color: #000000;\">You can get approved for a mortgage with a new job if you follow a few simple steps and prepare yourself with the documentation needed to give yourself the best chance of receiving a mortgage approval.<\/span><\/p>\n<p><span style=\"color: #000000;\">Often times, home buyers find themselves in a situation where they are in the market to buy a new home or refinance, but they also are going through a job change at the same time.<\/span><\/p>\n<h2><span style=\"color: #000000;\"><strong>Mortgage Employment Requirements<\/strong><\/span><\/h2>\n<p><span style=\"color: #000000;\">Today&#8217;s lending guidelines have very strict employment requirements since the &#8220;ability to repay rule&#8221; under the <a style=\"color: #000000;\" href=\"https:\/\/www.cftc.gov\/LawRegulation\/DoddFrankAct\/index.htm\" target=\"_blank\" rel=\"noopener\">Dodd Frank Act<\/a> was put into place. Lenders must verify that borrowers have the ability to repay a mortgage that is secured against a primary residence. As a result, lenders are also verifying the borrower has secured verifiable and steady employment and income.<\/span><\/p>\n<p><span style=\"color: #000000;\">The basic mortgage employment requirement for Fannie Mae, Freddie Mac and government mortgages are as follows:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">W2 wage earners must have been fully employed for the past two years. That employment does not have to be the same job during that two year period.<\/span><\/li>\n<li><span style=\"color: #000000;\">Self employed borrowers must have a two year history operating the business<\/span><\/li>\n<li><span style=\"color: #000000;\">Part time jobs can be counted if the job has lasted for two years<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Exceptions:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Recent college graduates can qualify with a new job<\/span><\/li>\n<li><span style=\"color: #000000;\">Individuals who were recently serving in the military can qualify with a new job<\/span><\/li>\n<li><span style=\"color: #000000;\">Caring for a gravely ill child or relative<\/span><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000000;\">*all of these exceptions must be fully documented<\/span><\/p>\n<h2><span style=\"color: #000000;\"><strong>Can I Get a Mortgage if I Change Jobs?<\/strong><\/span><\/h2>\n<p><span style=\"color: #000000;\">You can get a mortgage if you are changing jobs but lenders will be looking for consistent or increased income during the transition. Employment within the same industry is something that lenders will also weigh in as part of their decision making process. The length of time spent at the prior job and little to no gap in between jobs may also be important.<\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/PICS5D5wKn8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2><span style=\"color: #000000;\"><strong>Documentation Needed When applying for a Mortgage with a New Job<\/strong><\/span><\/h2>\n<p><span style=\"color: #000000;\">Home buyers are routinely able to get approved for a mortgage when changing jobs if they can provide the following documentation to the lender during the application process.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Offer letter from new employer or signed contract<\/span><\/li>\n<li><span style=\"color: #000000;\">Letter of explanation regarding the job change<\/span><\/li>\n<li><span style=\"color: #000000;\">Last 30 days pay stubs<\/span><\/li>\n<li><span style=\"color: #000000;\">Last two months bank statements<\/span><\/li>\n<li><span style=\"color: #000000;\">Last two years W2s<\/span><\/li>\n<li><span style=\"color: #000000;\">Last two years tax returns<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">These are just the most common things that a lender will ask for. Do not be surprised or upset if your lender is looking for additional documentation that may seem out of the ordinary. Simply provide what they are looking for quickly so you can get approved.<\/span><\/p>\n<h2><span style=\"color: #000000;\"><strong>Can I G<\/strong><strong>et Denied for a Mortgage if I Change Jobs?<\/strong><\/span><\/h2>\n<p><span style=\"color: #000000;\">There are reasons why a lender may deny your mortgage if you recently changed jobs. Here are just a few examples:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Significant decrease in pay<\/span><\/li>\n<li><span style=\"color: #000000;\">Switched to full or partial commission or bonus<\/span><\/li>\n<li><span style=\"color: #000000;\">New job is in a different industry or line of work<\/span><\/li>\n<li><span style=\"color: #000000;\">Going from W2 to 1099<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">They key to getting approved for a mortgage when changing jobs is consistency in both income and line of work. If any of these examples above apply to you, it may be difficult to get approved for a mortgage but not impossible.<\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Compensating Factors When Changing Jobs<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\">If you are changing jobs and the lender is reviewing your file, they often take compensating factors into consideration. These factors are a benefit to you and will often help tip the decision making into your favor.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Low debt to income ratio<\/span><\/li>\n<li><span style=\"color: #000000;\">Cash reserves of more than 6 months<\/span><\/li>\n<li><span style=\"color: #000000;\">High Credit Scores<\/span><\/li>\n<li><span style=\"color: #000000;\">Previous mortgage history with on time payments<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">Compensating factors such as these above can be a great benefit to you when applying for a mortgage regardless of whether you recently changed jobs.<\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>What if I have an Employment Gap when Changing Jobs?<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\">Employment gaps when changing jobs can be explained and may be acceptable to most lenders. However, the longer the gap the more difficult it may become to get approved for a mortgage. Gaps of 1-2 months is typical. When your gap is 3-6 months that is when the approval is less certain and the compensating factors referenced above will come into play.<\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Can I get a mortgage if I go from W2 to 1099?<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\">If you change from a W2 salaried or hourly job to 1099, then a mortgage approval will be difficult. Lenders will want to see you employed as 1099 for a full two years. They key to getting approved for a mortgage when going from W2 to 1099 is as follows:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Staying in the same industry or even better with the same company<\/span><\/li>\n<li><span style=\"color: #000000;\">Increase in compensation<\/span><\/li>\n<li><span style=\"color: #000000;\">Documented or signed contract that guarantees your 1099 pay for the next two years<\/span><\/li>\n<li><span style=\"color: #000000;\">At least 2-3 months of 1099 pay already in the books<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>[Read]<\/strong> <a href=\"https:\/\/dreamhomefinancing.com\/mortgages-for-contractors\/\"><strong><span style=\"color: #0000ff;\">Mortgages for 1099 employees<\/span><\/strong><\/a><\/span><\/p>\n<p><span style=\"color: #000000;\">If you would like to get pre-approved for a mortgage with a recent or upcoming job change, simply complete this loan scenario form and someone will get back to you to immediately.<\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Related Articles\u00a0<\/strong><\/span><\/h3>\n<p><a href=\"https:\/\/dreamhomefinancing.com\/mortgage-without-two-years-work-history\/\"><span style=\"color: #0000ff;\"><strong>Mortgage without a Two Year Work History<\/strong><\/span><\/a>\u00a0&#8211; <span style=\"color: #000000;\">This article will discuss your options in obtaining a mortgage without a full two year work history.<\/span><\/p>\n<p><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/dreamhomefinancing.com\/ConventionalLoans.aspx\">Conventional Mortgage Lenders<\/a><\/span><\/strong>\u00a0&#8211; <span style=\"color: #000000;\">If you are looking for a conventional mortgage you can find the guidelines and get connected with a great lender here.<\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6646\" src=\"https:\/\/dreamhomefinancing.com\/wp-content\/uploads\/2021\/01\/Mortgage-with-a-New-Job-2.jpg\" alt=\"Mortgage with a New Job\" width=\"400\" height=\"600\" srcset=\"https:\/\/dreamhomefinancing.com\/wp-content\/uploads\/2021\/01\/Mortgage-with-a-New-Job-2.jpg 400w, https:\/\/dreamhomefinancing.com\/wp-content\/uploads\/2021\/01\/Mortgage-with-a-New-Job-2-200x300.jpg 200w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/strong><\/span><\/h3>\n<h3><span style=\"color: #000000;\"><strong>Discussion Topics<\/strong><\/span><\/h3>\n<p><span style=\"color: #ff9900; font-size: 14pt;\"><strong><a style=\"color: #ff9900;\" href=\"https:\/\/dreamhomefinancing.com\/category\/Mortgage-Advice\/\">Mortgage Advice<\/a><\/strong><\/span><\/p>\n<p><span style=\"color: #ff9900; font-size: 14pt;\"><strong><a style=\"color: #ff9900;\" href=\"https:\/\/dreamhomefinancing.com\/category\/Buying-a-Home\/\">Buying a Home<\/a><\/strong><\/span><\/p>\n<p><span style=\"color: #ff9900; font-size: 14pt;\"><strong><a style=\"color: #ff9900;\" href=\"https:\/\/dreamhomefinancing.com\/category\/Home-Improvement\/\">Home Improvement<\/a><\/strong><\/span><\/p>\n<p><span style=\"color: #ff9900; font-size: 14pt;\"><strong><a style=\"color: #ff9900;\" href=\"https:\/\/dreamhomefinancing.com\/category\/Real-Estate\/\">Real Estate<\/a><\/strong><\/span><\/p>\n<p><span style=\"text-decoration: underline; font-size: 14pt;\"><strong><a href=\"https:\/\/dreamhomefinancing.com\/category\/Home-Finances\/\"><span style=\"color: #ff9900; text-decoration: underline;\">Home Finances<\/span><\/a><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Getting a Mortgage with a New Job You can get approved for a mortgage with a new job if you follow a few simple steps and prepare yourself with the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":4885,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[190],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/posts\/4878"}],"collection":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/comments?post=4878"}],"version-history":[{"count":12,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/posts\/4878\/revisions"}],"predecessor-version":[{"id":6647,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/posts\/4878\/revisions\/6647"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/media\/4885"}],"wp:attachment":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/media?parent=4878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/categories?post=4878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/tags?post=4878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}