How does job change affect loan approval?

3 Replies

A new job opportunity was presented to me recently from a great company I have had my eye on for awhile. I just interviewed today and got the job :) At the same time I am ready to buy my first deal. 

I have been at current job for awhile, good salary, credit, debt-to-income, etc., and would easily qualify for a loan. I have been told by a friend that if it isn't a career change (it's not) and roughly the same pay (it is, hopefully more) the affects would be very minimal. Is this true?

The loan will be FHA or 203K. Not worried about being approved as much as getting worse rates/terms for my first deal.

@Joe Ferguson there won't be an issue since you've had consistent employment and your new income will be the same or higher. The bank will call your new employer to verify your income, they will also ask your new employer to verify your income in writing. If you have an offer letter for new job that will help if you apply for the loan before you get two months of paystubs.
Originally posted by @Joe Ferguson :

A new job opportunity was presented to me recently from a great company I have had my eye on for awhile. I just interviewed today and got the job :) At the same time I am ready to buy my first deal. 

I have been at current job for awhile, good salary, credit, debt-to-income, etc., and would easily qualify for a loan. I have been told by a friend that if it isn't a career change (it's not) and roughly the same pay (it is, hopefully more) the affects would be very minimal. Is this true?

The loan will be FHA or 203K. Not worried about being approved as much as getting worse rates/terms for my first deal.

 If it's unambiguous W2 base salary, or hourly with guaranteed hours, and approximately the same type of job, you're fine.

Where people get jammed up is their new "employer" gives them a 1099 and the old one is W2. Your "employer" is actually telling the IRS that you're an independent contractor, in that case, and Aunt Fannie Mae follows Uncle Sam's lead.

Thanks for you input @Ray Johnson and @Chris Mason

I didn't think it was an issue. I guess I was mainly worried about the typical 6 months to a year they require but yes everything is nearly identical just switching companies. 

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