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Can getting a new job affect your chances of mortgage approval?

I have 4 years at my current job, but I'm considering searching for something new with more income. This decision comes after being told that my current earnings would not be sufficient to apply for a mortgage without a co-signer. If I got a new job, would this affect my approval rating for a mortgage? Would I have to be employed at the new job for a certain period of time? by RyanBishop935 from Monroeville, Pennsylvania. Jan 30th 2017 Reply

Mike and Jill Kohler (LenderMike)
#31 ranked lender in Pennsylvania - 56 contributions

Ryan,Most lenders will take into account your new income. I would recommend not having a long gap in your employment. They will looks at your last 2 years, but most of the lenders I deal with will base your income on your new earning. They take into account you've taken a new job and new income.

Jan 30th 2017
Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

I highly recommend you review your situation with a mortgage broker/banker licensed in Pennsylvania so you can look at your overall income situation. Some jobs transition are fine in regards to w-2 income type jobs. However, your past income will be looked at very closely before the lender is willing to use the new income. There is a good chance they will use your past couple of years of income if the type of job is radically different from what you were doing. If you work in at least a very similar field of work then the new income could be considered over the new income. Usually figure on wanting to see 3 months at least on the new job. With the same work loans are available upon providing as little as one month of paystubs, and using the new income only.

Jan 31st 2017
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,054 contributions

Yes, no, and maybe. Generally speaking, if you go for an hourly or salary job to a new hourly or salary job, it has little effect on getting a new loan. Where issues come into place is if you've been out of work for more than 6 months, or if the new job is commission, tipped income, self employed, or some other sort of variable income. You do need to have a two-year job history TOTAL in your life, but if salary or hourly, it does NOT need to be with the same employer. As always, talk to a local mortgage broker in your area for more information. For loans in MN, WI, or South Dakota, visit me at

Feb 1st 2017
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