LOOKING TO BUY A NEW HOME, BUT YOUR NEW JOB HASN’T STARTED YET?

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Yes, it’s possible, however, lenders are looking for stable income when you apply for a mortgage so there are some key points to be aware of if you are in the midst of a job change at the same time you are trying to close on a mortgage.

  • Timing of the closing on the new home and the start date of the new job
  • Gaps in employment
  • Years of experience in the line of work

As is always the case, there are variables in the qualifying conditions for each of the various loan types so let’s be sure the one that you are applying for will work for you based on your circumstances.

CONVENTIONAL FINANCING

  • Will not allow the new job to be with a family member or an interested party to the transaction you are in.
  • You can only use the fixed based income, so no bonus, commission, over-time, etc.
  • Your start date on the new job must be within 90-days of the Note date.
  • No earlier than 30-days prior to the Note date
  • No later than 90-days after the Note date
  • 1-4 unit primary
  • Second home
  • 1-4 unit investment property

FHA FINANCING

  • Will not allow the new job to be with a family owned business
  • Your start date on the new job must be within 60-days of closing
  • Must document adequate income or reserves to cover the mortgage payment in the interim

VA FINANCING

  • Offer of employment beginning after closing is acceptable.
  • No guidance on start date – confirm with your Lender

USDA FINANCING

  • Written offer letter required
  • Job to begin within 60-days of closing
  • Must document adequate income or cash reserves to support the mortgage payment(s) during the interim.

Some lenders may have additional overlays, please check with your Lender to confirm their requirements.

Questions? Give me a call, 360-459-1200!

#mortgagesbymichelle #practicaltipstuesday

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