W2 Income History

[Kyler J Sloan]

So, I am about to switch jobs, but also hoped to buy another house very soon. 

Is a 2 year income history all that is expected, or will it matter if switched jobs immediately prior to applying for financing? 

Thanks!

[Chris Mason]

Quote from @Kyler J Sloan:

Thanks! @Reid Chauvin

Another thing that I have questioned relates to the fact that I am considering self-employment soon. What if I go to being a W2 employee, doing the same thing in the same industry, but working for myself instead of someone else?

Go get all the mortgages you're going to want for the next 2 years out of your system, AND THEN go start your new business. Home purchase, refinance, HELOC, whatever. You can't rely on "maybe" and loophopes (which may be fleeting) when it comes to stuff like this, if want there to be certainty, then I'm certain you should go get all the mortgages out of your system now. 

I did this personally when I went from mortgage banker (W2) to mortgage broker ("1099" - not really but close enough) some years ago, because it turns out what's good for the goose is good for the gander. I was eager to get going, so I did a refi a little earlier than I otherwise would have done, and got a "you never know" HELOC that I never wound up needing/using.

You can "lay groundwork" while getting a mortgage, for example if you establish an S Corp, or get a new license/credential, without quitting your current job, then your current job's income will still "count." Obviously don't tell anyone at your current place of employment that you're thinking of making a switch.