Can I Switch Jobs Before Buying a House?
It can be exciting to take the plunge into homeownership, but individuals should make sure all of their ducks are in order before taking such a major step. This includes having a stable source of income that is reliable and steady. For those considering a job switch prior to purchasing a home, there are a few factors to consider.
Before applying for a mortgage, it’s important to make sure that your credit score meets the lender’s requirements; a poor credit score could mean difficulty securing a loan. Having a steady job means that you are able to pay off your bills on time, which is why lenders often require stable employment before issuing a loan, and changing jobs may sometimes be seen as a red flag to lenders.
Income and Down Payment
When making a down payment, typically buyers will need to have the funds readily available. This can be difficult for those who are between jobs as the amount of savings attributed to the down payment should come from stable employment. Some lenders may also require proof of income and evidence that the job change is legitimate; waiting at least two months after the job switch would likely be required to begin the home buying process.
Benefits of Switching Jobs
Although stability is important when applying for a loan, it is definitely possible to switch jobs before buying a house. Depending on the new job, it could result in a higher salary and more tax deductions, which could, in turn, make the loan more acceptable. In the long run, certain professions may offer more stability, better benefits, and more job security, all of which will make a positive impression on lenders.
Helpful Tips for Switching Jobs Prior to Buying a Home
- Keep up with your finances: Make sure that bills and loan repayments are always made on time in order to protect credit score.
- Work with a trusted lender: A reliable loan officer can help you navigate the loan process and provide insight on how to proceed.
- Take care of paperwork: Providing evidence such as pay stubs or job offers will prove to lenders that the job switch is legitimate.
Whether you are contemplating buying a house in the immediate or distant future, switching jobs before you purchase can be a tricky situation. However, it’s not impossible to find lenders that approve such a request. It is recommended to proceed with caution and follow the tips above in order to get the best terms on the loan.