topic Job change before applying for mortgage in Mortgage Loans

Job change before applying for mortgage

CreditCurious — Sat, 21 Dec 2024 17:30:17 GMT

Looking for opinons on the impact of a job change on a mortgage application.

Lost my job in 07/2024, salary of $113k. Started a new job, similar industry, same role, in 10/24. Salary a bit lower at $105k. The new title is not as impressive as the older title, but I am doing similar work. Due to a bit of severance and vacation payout, my declared salary for 2024 will remain stable despite the few months of unemployment.

My spouse is self employed, and shows a consistently increasing income over the past 5+ years, this year about $50-55k on a schedule C.

I am interested in moving at some point in the next year to move closer to my new job. I will probably roll over equity into a new property, so I will have a down payment of about 65% of home value. My FICO 8 is around 825, hers is a bit lower, but not much.

Is the recent job change a big deal in my case? Everything else seems pretty solid in my opinion

Re: Job change before applying for mortgage

ShanetheMortgageMan — Sat, 21 Dec 2024 18:19:31 GMT

The gap in employment isn't too significant, you're being paid salary instead of hourly variable income, have excellent credit scores and a large down payment, so it won't be an issue to underwriting.

Since your wife's business is at least 5 years old you should only have to provide the most recent year's federal tax return in order to count its income, rather than 2 years.

I wouldn't sweat it at all.

Re: Job change before applying for mortgage

CreditCurious — Sat, 21 Dec 2024 18:32:32 GMT

Thank you.

I am not too worried about supplying multiple years for her, we have everything declared and documented on tax filings, with her income backed up with reports from her credit card processor. My only real thought was the employment gap as primary wage earner.

Appreciate the reponse.