Purchasing a home can be a drawn-out process for anyone, no matter how much money you have. Lenders can flag you as not being qualified based off of a number of factors. One of the most difficult situations in which to get a mortgage loan is when you have changed jobs. But fear not, it can be done! If you have recently changed jobs, make sure you follow these steps to help secure a loan.
Communicate With the Lender
If you think that you may be switching jobs – or are considering making a work-related change – that would impact how much you will be making, make sure you communicate this with your lender as soon as possible. The earlier you get this information on file, the better, as your lender will need to review it in order to be able to share with you what paperwork you will need to make qualifying for your home possible. As soon as you have signed the contract for the new job, send it to your lender; do this with any additional paperwork that comes in from the new job as well.
Having the Right Paperwork
Your lender will want to see your contract and most recent pay stub as soon as possible. The faster you can show the lender that you will still will be making the same amount (or more), the better the situation you put yourself in. If your income tends to fluctuate it is important to be able to have previous pay stubs on hand so as to allow you to obtain an average income. Fluctuating finances can make it difficult for lenders to feel comfortable when approving your loan.
New Employer Giving You a Letter of Recommendation
Once you have done the above steps you may want to think about asking your new employer to write you a letter. The information in the letter can be about how secure your job is and how much your are projected to make. This letter can be important as it can make your situation more reliable to the lenders. If your pay is based off of commission you may also want to ask a fellow employee to write you a letter. A co-worker who is in the same job as you can let the lender know how much they make, hopefully giving the lender a projected amount for you as well.
When purchasing a home, you need to make sure you are very organized throughout the entire process. This organization will make you seem more reliable to the lender while also ensuring you are maintaining opens lines of communication. Having your paperwork on hand and in order helps in as to avoid any delays or hesitations throughout the mortgage application process.