Looking to apply for a mortgage but thinking of changing your job? A job transition is common and not a deal-breaker for your mortgage. You can get a mortgage between jobs by applying for an offer letter mortgage. Most of the time, to be approved for a mortgage, you need the income that’s stable, reliable, and likely to continue for at least 3 years. And with regards to new jobs, you’d have to be making an upward or at least a lateral move within the same industry.
How important is your job when applying for a mortgage?
It is a no-brainer that your job is very crucial to your mortgage application. The reason is that you need to state your profession, who your employer is and how long you have been working with the employer.
Lenders need to know this information to determine the level of the security of your finances before approving the mortgage loan. Your qualification for a mortgage will not be based only on the length of employment. The mortgage lenders will also consider your income, credit history, and age.
When does your job affect your mortgage application?
Your job has a direct effect on your mortgage application in the following ways:
1. Nature of Job
It is crucial to know that your job or career has a significant impact on your mortgage application. If your job is more stable or high in demand, it will increase your chances.
2. A New Job
If you just got a new job, lenders would assume that you are on probation period. This means you may be out of work anytime, leaving you without a source of income. In this case, your mortgage application may not be approved because many mortgage lenders do not accept applications from people who just started working at a new company.
As a result, changing your job will affect your application. However, there are twists to this condition based on some factors like when the new job offers a higher salary. In this case, it is possible to be offered a higher amount of money to borrow, if your job is considered stable by the lender.
Changing Your Job Versus Getting a Mortgage
If you have secured a mortgage and started making money repayments, you may not tell your lender about the change of job or that you have been made redundant, as long as you can meet up with the monthly repayments. However, if you can’t keep up with the monthly repayments, you must inform the mortgage provider.
If you are optimistic that you will get a new job and earn a higher salary, get the job and wait for the probationary period to be over before applying for a mortgage. On the contrary, if you are not sure that changing your job will give you a higher income, secure the mortgage first before changing your job.
Request Professional Advice from a Mortgage Broker
If you are considering changing your job and getting a mortgage at the same time, seek professional advice from a mortgage broker. The mortgage broker can help you find a provider that will be suitable for you. However, do not be too eager to act. Consider the existing factors and your chances before making a final move.