Length of employment question.

[SamsungHDTV]

Friend has been at his same employer 4+ years and gets an hourly base + commission.

He is considering a job change this year and a mortgage. He was advised to get the mortgage before the job change because if he switched to a pure salary job, he would have to wait 2 years to be able to qualify.

Question: do lenders not consider the 4 years he has been at his employer if he switches job?

[Anonymous]

Same field of work? Just a better offer or advancement?

[Revelate]

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@SamsungHDTV wrote:

Friend has been at his same employer 4+ years and gets an hourly base + commission.

He is considering a job change this year and a mortgage. He was advised to get the mortgage before the job change because if he switched to a pure salary job, he would have to wait 2 years to be able to qualify.

Question: do lenders not consider the 4 years he has been at his employer if he switches job?

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Two different things: employment history and income qualification.  That said I don't see an issue here assuming he's continuing in his line of work... people change jobs, modern fact of life and banks are cognizant of that.

Tax return wise if he was on hourly and commission for 2+ years can't see where any lender would quibble about that, and if the new gig is straight W2 that's as easy as it gets for documenting income and he can qualify as soon as he can document 30 days worth of paystubs.

What would require two years if he's getting a bonus or other variable compensation in the new gig and attempting to claim that as income, that'd be 2 years presumably but if he doesn't need that to clear the DTI hurdle, no sweat.

[SamsungHDTV]

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@Revelate wrote:

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Two different things: employment history and income qualification.  That said I don't see an issue here assuming he's continuing in his line of work... people change jobs, modern fact of life and banks are cognizant of that.

Tax return wise if he was on hourly and commission for 2+ years can't see where any lender would quibble about that, and if the new gig is straight W2 that's as easy as it gets for documenting income and he can qualify as soon as he can document 30 days worth of paystubs.

What would require two years if he's getting a bonus or other variable compensation in the new gig and attempting to claim that as income, that'd be 2 years presumably but if he doesn't need that to clear the DTI hurdle, no sweat.

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Thanks for your input!

He just made the job switch and now is afraid to apply because he doesn't want to waste an inq. To give a little more details:

Its not the same line of work. He went from personal banker getting a base + commission to analyst with straight salary, BUT his new salary is more than his previous two years of income.

So how does it affect an applicant if he switches jobs into a new line of work?

[ezdriver]

Depends. An analyst with a bank or financial institution like previous employer?  Sounds like new employer? It's helpful to know the whole picture to provide more useful feedback. 

[Anonymous]

Driver said-

"It's helpful to know the whole picture"

I agree, so what kinda Samsung do ya have and what size?

[SamsungHDTV]

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@ezdriver wrote:

Depends. An analyst with a bank or financial institution like previous employer?  Sounds like new employer? It's helpful to know the whole picture to provide more useful feedback. 

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You are correct. Its a new employer in a different industry. The only plus side is that its non commission salary and its more than his last two years average. Let me know what other details would be helpful.

Main thing I'm trying to figure out is: Is it possible to get approved if you recently switched jobs in a completely different line of work and employer.

I appreciate your input.

[SamsungHDTV]

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@Anonymous wrote:

Driver said-

"It's helpful to know the whole picture"

I agree, so what kinda Samsung do ya have and what size?

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Well Mr Bama back when I created this myfico account, I had a 32" Samsung. It was when HDTV was cool. Now its UDTV.

Sadly, my ex girlfriend got angry one time and HULK SMASHED it on the ground. Now, I don't watch TV.

What are you going to get for your new house?

[ezdriver]

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@SamsungHDTV wrote:

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@ezdriver wrote:

Depends. An analyst with a bank or financial institution like previous employer?  Sounds like new employer? It's helpful to know the whole picture to provide more useful feedback. 

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You are correct. Its a new employer in a different industry. The only plus side is that its non commission salary and its more than his last two years average. Let me know what other details would be helpful.

Main thing I'm trying to figure out is: Is it possible to get approved if you recently switched jobs in a completely different line of work and employer.

I appreciate your input.

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Ok...so different job, with different employer in different industry. On the plus size, its a W2 permanent position.

It is doable but will require an underwriter's exemption. I believe the underwriter will want to see several months of employment in the new job [maybe six] as well as several months of consistant W2 earnings. I'd recommend crafting a letter of explanation highlighting the similarities of the previous and current jobs and the fact that compensation is now fixed, predictable and consistent. It is all about how the file is "sold" to the underwriter.

Tell us about the lender. Bank, banker, broker?

[SamsungHDTV]

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@ezdriver wrote:

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@SamsungHDTV wrote:

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@ezdriver wrote:

Depends. An analyst with a bank or financial institution like previous employer?  Sounds like new employer? It's helpful to know the whole picture to provide more useful feedback. 

---

You are correct. Its a new employer in a different industry. The only plus side is that its non commission salary and its more than his last two years average. Let me know what other details would be helpful.

Main thing I'm trying to figure out is: Is it possible to get approved if you recently switched jobs in a completely different line of work and employer.

I appreciate your input.

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Ok...so different job, with different employer in different industry. On the plus size, its a W2 permanent position.

It is doable but will require an underwriter's exemption. I believe the underwriter will want to see several months of employment in the new job [maybe six] as well as several months of consistant W2 earnings. I'd recommend crafting a letter of explanation highlighting the similarities of the previous and current jobs and the fact that compensation is now fixed, predictable and consistent. It is all about how the file is "sold" to the underwriter.

Tell us about the lender. Bank, banker, broker?

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Haven't chosen a lender. Recommendations? Which is easiest to get approved knowing this hurdle?