Is getting approved for a new mortgage a problem with a new job?

[jamesbond007]

So, I've been working in my industry for 13 years and I moved up in career and pay with a new job. new job gave me a 50% pay bump in base salary alone. I am planning to apply for a mortgage and get a pre-approval but the BofA dude told me that it might be a problem as I have a new job and told me wait 1 full month before even applying. Is this true? Never heard of this. Anyone did this in the recent past?

[JustTrying]

I bought a house within 3 weeks of starting a new job in 2013. The bank wanted a copy of my contract, and then when we were closing they wanted a copy of my first paystub, which I was barely able to produce, as I got my first paycheck around a day before we closed. I recall that they were not so concerned about me having a new job, but they were concerned about me being in the same career.

I'm very hopeful to get a job offer in a new state soon enough, and hope that I will be buying a new house in the new state prior to starting the new job, and after quitting the current job. We'll see how mortgage approval goes. I now have more assets than I did in 2013, so I'm anticipating it will work out. In 2013, my networth was -150,000. Now it's +1,000,000, but a good 650,000 of that is in 401ks/Roths/HSAs, so I'm thinking it will look good but not sure how much it will help.

Good luck!

[zolotiyeruki]

I bought a house within 3 weeks of starting a new job in 2013. The bank wanted a copy of my contract, and then when we were closing they wanted a copy of my first paystub, which I was barely able to produce, as I got my first paycheck around a day before we closed. I recall that they were not so concerned about me having a new job, but they were concerned about me being in the same career.

I'm very hopeful to get a job offer in a new state soon enough, and hope that I will be buying a new house in the new state prior to starting the new job, and after quitting the current job. We'll see how mortgage approval goes. I now have more assets than I did in 2013, so I'm anticipating it will work out. In 2013, my networth was -150,000. Now it's +1,000,000, but a good 650,000 of that is in 401ks/Roths/HSAs, so I'm thinking it will look good but not sure how much it will help.

Good luck!

About ten years ago, I had a similar experience.  The lender needed proof of employment, and preferably a first pay stub to show.  It was a hassle, yes, but ended well. I don't recall there being an issue with the change in career.

All that said, though, our proposed payment-to-income was way too high (we hadn't sold our previous home yet, and I was taking a salary cut), so we actually qualified by ignoring the job change and treating the situation as if we were purchasing a second home.

[E.T.]

I closed on a house shortly after getting a new job and it wasn't an issue for getting a mortgage. They wanted to know that the new job was in the same industry / general career field and the only hassle was getting the paperwork for the first pay stub. I had several years of consistent work history in that career field at the time so I think that helped.

[tygertygertyger]

I've been hearing you need 2 years at a place, or you need to have switched within the same industry (ie I was teaching at X school, but I switched to Y school.) By that metric you should be okay.

[jamesbond007]

Great to know. I moved up in the same field/industry that I've been working on forever. Thanks for sharing your experiences.

[Telecaster]

I've always been told (by lenders) that it didn't matter as long as it was in the same industry.    And anecdotally, my wife switched from one industry to another and we got a mortgage with no problem a short time later.  And then switched back to her old industry and we got another mortgage no problem. 

[achvfi]

So, I've been working in my industry for 13 years and I moved up in career and pay with a new job. new job gave me a 50% pay bump in base salary alone. I am planning to apply for a mortgage and get a pre-approval but the BofA dude told me that it might be a problem as I have a new job and told me wait 1 full month before even applying. Is this true? Never heard of this. Anyone did this in the recent past?

Be wary of applying mortgage loans with large banks like BofA. They are usually more expensive, bureaucratic, slow and frustrating. :)

I strongly advice applying with local mortgage brokers, credit unions or local banks.

[ender]

Great to know. I moved up in the same field/industry that I've been working on forever. Thanks for sharing your experiences.

I recently did this (started new job, moved, and bought a house).

The bank just wanted more proof of historical income so that it was clear my income could be sustained.

I imagine you'd have more issues if you made $100k/year for 10 years and then took a $500k job and wanted to buy a house after two months that would only be affordable on the $500k income.

[Abe]

If your salary is in the normal range for whatever your new job is, and you don't over-stretch your budget, it is usually not a problem. See if your employer has a company they work with often (mine did, and that streamlined the process quite a bit).

[jamesbond007]

So, I've been working in my industry for 13 years and I moved up in career and pay with a new job. new job gave me a 50% pay bump in base salary alone. I am planning to apply for a mortgage and get a pre-approval but the BofA dude told me that it might be a problem as I have a new job and told me wait 1 full month before even applying. Is this true? Never heard of this. Anyone did this in the recent past?

BofA is quoting me a really good rate. Also, I get back 0.5 points worth of cash via my company relationship with BofA. having said that, my usual go to is CashCall and they are quoting exorbitant rates. Will have to explore more options.

Be wary of applying mortgage loans with large banks like BofA. They are usually more expensive, bureaucratic, slow and frustrating. :)

I strongly advice applying with local mortgage brokers, credit unions or local banks.

[socaso]

When we got our current home I had changed jobs about 4 months prior to the purchase. It was a different company but same job title so I was told it didn't matter but it was viewed as a lateral move by the bank.

I wouldn't just take one person's opinion about this. There are tons of companies doing mortgages. Ask around among friends, family, coworkers and call a couple more people. I find large banks don't have the creativity to figure our mortgages for people unless everything is completely straightforward.

[Aegishjalmur]

So, I've been working in my industry for 13 years and I moved up in career and pay with a new job. new job gave me a 50% pay bump in base salary alone. I am planning to apply for a mortgage and get a pre-approval but the BofA dude told me that it might be a problem as I have a new job and told me wait 1 full month before even applying. Is this true? Never heard of this. Anyone did this in the recent past?

Nope, is not normally* as issue. You have been in the same line of work. The UW may ask for a letter of explanation supporting how this job is related to previous due to the increase in pay. There is a tracking exception** to allow a loan to be approved before receipt of the first paycheck. The reason the bank employee told you wait a month is that you will 1). either have 2 paychecks as the basic guidelines want 30 days pay history, or 2). the UW can order a written verification of employment(WVOE) from your employer in lieu of paychecks.

*normal=Some bank employees are not well trained in mortgage requirements so will quote you guidelines that are not correct.

**tracking exception=Either Fannie Mae/Freddie Mac will allow these types but the other will not so the UW has to mark the file so it can be directed to be sold to only