Changing Careers While Buying a Home

By
Real Estate Broker/Owner with True Sarasota Real Estate


real estate guideDepending on your work history and your lender, changing careers while buying a home may complicate your mortgage application process.  For this reason, most mortgage experts advise completing your real estate transactions - buying, selling or refinancing - before launching a major career move. This is especially true if you are planning to start your own business or become an independent contractor.

Mortgage lenders not only verify employment at the beginning of the loan application process, but some re-verify the final 72 hours before your closing. Be aware that if you withhold information about an impending job change, you could potentially be committing income fraud.

However, for many borrowers, the career move cannot be postponed, and the job change will bring substantial benefits such as higher income (which may help you qualify for a better loan).

When you must start a new job or change careers in the middle of the application process, be prepared for additional time and some potential red tape. Many lenders will want to see an employment contract or a letter with a job offer before approving a mortgage. If you're counting on a future raise or bonus (as your projected income), you may be asked for a confirmation letter from your employer.

If you're buying a home in Sarasota, Florida, contact us at True Sarasota Real Estate (941) 918-1956. As Exclusive Buyer Agents, we're dedicated 100% to home buyers, and have helped buyer around the world select and purchase the best real estate in Sarasota, Florida.

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Topic:
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Advice for Buyers
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Tags:
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mortgages
applying for a mortgage
changing jobs
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buying a home

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Great point, Bill - it's definitely a piece of info that makes the heart of a real estate agent skip a beat when you hear that anything is changing in the midst of the transaction - but it is CRITICAL that buyers never be duplicitious and try to hide the true nature of matters affecting their financial reporting. As you say, it may be that the change is for the positive (higher income) or cannot be avoided - but when circumstances change, please make sure your lender and real estate professional is in the loop!  Great advice, Bill - thanks!

Apr 19, 2012 11:59 AM #1
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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
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William,  Great post and spot on!  Buyers should remain where they are at employment wise until after closing, I have actually had a deal crumble even after signing at the closing table.  They verified employment and it had changed since application. No funding, no recording no deal!

Apr 19, 2012 12:01 PM #2
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Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie
Charles Rutenberg Realty - Palm Harbor, FL
Palm Harbor & Dunedin FL Residential Real Estate

More important information for potential buyers! I have gone through this with buyers and even when they are staying in the same field, it can cause delays.

Apr 19, 2012 01:46 PM #3
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Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

William, this is so true, and have a listing closing next week where the buyer just changed jobs.   Lender said we are fine --- we shall see!

Apr 19, 2012 03:48 PM #4
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Lawrence "Larry" & Sheila Agranoff. Call 631-805-4400 (c)
Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

William, Yes this certainly can delay the loan process, but as you say sometimes it may mean a higher earning potential. But, keeping everyone advised of the changes is also important too!

Apr 20, 2012 05:10 AM #5
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William True

Sarasota Real Estate
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