Buying A Home
SCBride2007
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New here and nervous. A ? for you.
Hey all, I have a question: We want to move to the opposite side of our city because my H just got a new job in that area. My question is this, he begins his new job May 1st, we want to put an offer on a house we love tomorrow. I feel like him starting a new job is going to be a HUGE issue. He will be making more money, and the job is similar to his old one (went from church work to a non-profit). Do you think this is going to be an issue?
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Re: New here and nervous. A ? for you.
There are questions to answer first...
Are you renting now? If not, are you comfortable holding two mortgages?
Do you have an emergency fund saved that will be separate from any housing costs or down payments?
Have you figured out a budget that you will use to guide you in knowing how much house you can afford?
Have you been pre-approved for a mortgage?
I guess a little more information would have been helpful:
This is our first house that we are buying, so yes, we are renting now.
We have been pre-approved by a mortgage company <-- but they do not know that we are switching jobs in May.
We are very clear on what we can afford, and the offer we want to put in would actually put us paying under what we were paying in rent.
H still has his current job, and will until he begins the other job on May 1st. There will be no gap in employment.
I am mainly curious if the people are going to say, "No! He's leaving that job and we don't know if he will be totally stable at the next one!" Then I keep telling myself, "Don't people buy houses because of new jobs all the time?"
I think a lot of mortgage companies like to see you in the same job for 2 years (sometimes more). This came up when we were buying -- H had been in his current job over 2 years, but I had switched companies and had only been with my current job 18 months.
One option would have been to apply for the mortgage with only H (and his income) on it and leave me out.
But since I'd had essentially the same job title at both jobs, my mortgage broker advised me to just write a letter to include with the mortgage application stating that I'd been in the same line of work for more than 2 years (5 years with a previous company, then changed jobs to current company). That worked just fine -- I never heard anything else about it. HTH!
I wouldn't move forward without running this question past the company that you want to get a mortgage with. I imagine they all have different standards. I started a new job right before applying for a mortgage, but I don't think they cared because DH makes 3 times what I make. If he had just started a new job, I suspect they wouldn't have been as quick to approve us for a loan.
But as you said, people move and get new jobs and houses all the time. If you can afford the home on your income alone, that probably is better than if you're a SAHM for example. It seems that underwriting is somewhat of a crapshoot.
I asked our mortgage broker about this because we thought it could be an issue for us. As long as he's staying in the same field and isn't taking a demotion/pay cut you should be fine. They'll contact the new employer and ask about your H's prospects for future employment (as in, does it look like there is any danger of him being unemployed in the near future). As long as they don't say that he's on a probationary period, you'll be okay.
If they say he's on probation, you'll have to wait until he's made it through that period.
I would definitely just ask your mortgage person since it sounds like it's something that will come up.
Welcome and congrats!
As a PP said, I would make sure and call your lender and ask them about the change in employment. It's likely they might want to be able to see a paystub or two from this new employer first, before issuing a low. If that's the case, maybe you could ask for a longer closer to accomplish this. I know it wouldn't have you in the house before your DH started his new job but it might be worth it.
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