Change of jobs prior to home purchase

Change of jobs prior to home purchase

Member since 2020 · 1 post · 0 votes

Hello, everyone! My family has been learning about real estate and we have been planning  for our first rental purchase. We are planning on selling our current house and doing a house hack after it sells (waiting on insurance to pay for some roof damage repair on our current home before listing). 

I work as an engineer in aerospace; I was recently provided with job offers (W-2) with two different companies and was wondering how accepting a new job offer  may impact my ability to obtain traditional financing. 

The new jobs I have been offered are in the same general field and are similar to my current one, but the primary difference is that they are with smaller consultancies. From a details perspective, I would have the same base salary, similar benefits, and a slightly different bonus structure with a greater potential payout. The biggest contrast is the company size (my company has thousands of employees, whereas the new offers are small businesses of <20) and age (current company has been around for over a hundred years, whereas the consultancies are less than ten years old). The companies have solid financials and allegedly have a strong backlog of work and good cash reserves.

I was curious if anyone could help me understand what impacts, if any, there would be in obtaining traditional financing based on if I chose to switch to one of these other jobs.

Thanks in advance!

-Dan

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  • Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    Hi @Dan Durkin

    From my own experience, I had no issue with changing jobs and buying a home. A few years back, I went from a Fortune 500 company to a smaller one, changed career fields, and increased my income. The underwriter never asked any questions about it as my income was proven so you shouldn't have any issues in that regard. 

    If you're really worried, just ask your loan officer, but you should be fine.

  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Dan Durkin  Just because you are W2'd does not guarantee that you will be fine at your new job for the loan income wise.  The loan type and pay type will need to be analyzed.  Anything that is variable, like overtime, bonus, or commission will need at least a 6 month history at your new job to calculate what is usable.  But that's if you even need that income?  Hard to say in a setting like this.  I would certainly encourage you to speak with a loan officer right away.  Usually a prequalification is good for 3-4 months so if you are thinking of moving in that window of time then now is a good time to speak with him/her.  If you are already prequalified, then go back to them right away and ask these questions.  

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