|
For
most
people,
changing
employers
will
not
really
affect
your
ability
to
qualify
for
a
mortgage
loan,
especially
if
you
are
going
to
be
earning
more
money.
For
some
homebuyers,
however,
the
effects
of
changing
jobs
can
be
disastrous
to
your
loan
application.
How
Changing
Jobs
Affects
Buying
a
Home
For
most
people,
changing
employers
will
not
really
affect
your
ability
to
qualify
for
a
mortgage
loan.
For
some
homebuyers,
however,
the
effects
of
changing
jobs
can
be
disastrous
to
your
loan
application.
Salaried
Employees
If
you
are
a
salaried
employee
who
does
not
earn
additional
income
from
commissions,
bonuses,
or
over-time,
switching
employers
should
not
create
a
problem.
Just
make
sure
to
remain
in
the
same
line
of
work.
Hopefully,
you
will
be
earning
a
higher
salary,
which
will
help
you
better
qualify
for
a
mortgage.
Hourly
Employees
If
your
income
is
based
on
hourly
wages
and
you
work
a
straight
forty
hours
a
week
without
over-time,
changing
jobs
should
not
create
any
problems.
Commissioned
Employees
If
a
substantial
portion
of
your
income
is
derived
from
commissions,
you
should
not
change
jobs
before
buying
a
home.
This
has
to
do
with
how
mortgage
lenders
calculate
your
income.
They
average
your
commissions
over
the
last
two
years.
Changing
employers
creates
an
uncertainty
about
your
future
earnings
from
commissions.
There
is
no
track
record
from
which
to
produce
an
average.
Even
if
you
are
selling
the
same
type
of
product
with
essentially
the
same
commission
structure,
the
underwriter
cannot
be
certain
that
past
earnings
will
accurately
reflect
future
earnings.
Changing
jobs
would
negatively
impact
your
ability
to
buy
a
home.
Bonuses
If
a
substantial
portion
of
your
income
on
the
new
job
will
come
from
bonuses,
you
may
want
to
consider
delaying
an
employment
change.
Mortgage
lenders
will
rarely
consider
future
bonuses
as
income
unless
you
have
been
on
the
same
job
for
two
years
and
have
a
track
record
of
receiving
those
bonuses.
Then
they
will
average
your
bonuses
over
the
last
two
years
in
calculating
your
income.
Changing
employers
means
that
you
do
not
have
the
two-year
track
record
necessary
to
count
bonuses
as
income.
Part-Time
Employees
If
you
earn
an
hourly
income
but
rarely
work
forty
hours
a
week,
you
should
not
change
jobs.
There
would
be
no
way
to
tell
how
many
hours
you
will
work
each
week
on
the
new
job,
so
no
way
to
accurately
calculate
your
income.
If
you
remain
on
the
old
job,
the
lender
can
just
average
your
earnings.
Over-Time
Since
all
employers
award
overtime
hours
differently,
your
overtime
income
cannot
be
determined
if
you
change
jobs.
If
you
stay
on
your
present
job,
your
lender
will
give
you
credit
for
overtime
income.
They
will
determine
your
overtime
earnings
over
the
last
two
years,
then
calculate
a
monthly
average.
Self-Employment
If
you
are
considering
a
change
to
self-employment
before
buying
a
new
home,
don’t
do
it.
Buy
the
home
first.
Lenders
like
to
see
a
two-year
track
record
of
self-employment
income
when
approving
a
loan.
Plus,
self-employed
individuals
tend
to
include
a
lot
of
expenses
on
the
Schedule
C
of
their
tax
returns,
especially
in
the
early
years
of
self-employment.
While
this
minimizes
your
tax
obligation
to
the
IRS,
it
also
minimizes
your
income
to
qualify
for
a
home
loan.
If
you
are
considering
changing
your
business
from
a
sole
proprietorship
to
a
partnership
or
corporation,
you
should
also
delay
that
until
you
purchase
your
new
home. |
