Don’t Quit your Day Job… Until you have the Keys!
Some days can be really trying at work. I’m here to tell you to stick it out! Jeopardizing your chance of owning a home this year might be a worse experience. Changing jobs while you are searching for a home could possibly set you back by a year with most conventional lenders.
When you apply for a mortgage, lenders look for a stable income and employment history to make sure that you can afford to make your monthly payments. If you quit your job or change jobs during the mortgage application process, it can significantly impact your chances of getting approved for a loan. In some cases, lenders may even deny your application, as they cannot determine if you have a reliable source of income to pay off your mortgage.
Late night, come home
– Blink 182, All The Small Things
Work sucks, I know
She left me roses by the stairs
Surprises let me know she cares
What If I’m Pre-Approved?
Even if you are pre-approved you need to keep things as consistent as possible because your financing isn’t actually finalized until your mortgage broker gets the clear to close. If anything has changed about your financial situation before your closing date your whole application could become at risk. You could even have to find another lender who will take you on, but at a much higher interest rate.
Now once you own the home, and you want to line something else up employment-wise… go nuts! Just make sure that you are going to have enough to pay the bills for next month as there is can be a bit of a gap between pay cheques depending on when the pay periods fall at your old job and new one.
The last thing you want to have happen is not being able to close on your purchase. This exposes you to legal action and financial damages, so don’t rock the boat. You are best to stick it out a job you might not like for a while so that you don’t submarine your chances of owning a home this year.
