Financing in Gresham>Question Details

Newbie, Other/Just Looking in Gresham, OR

My husband and I want to prepare ourselves for buying a home in about a year. Would taking a new job w/ slightly better pay be a good idea or is your?

Asked by Newbie, Gresham, OR Mon Jul 19, 2010

steady work history with one company worth more?

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11
D’s answer
Hello,

Great question!

As long as you stay in the same line of work, taking a new job would be fine. If you plan on taking a job with overtime, bonus or commission know you need a 2 year history in order to use the income. It doesn't sound like self employment income is involved but if there was any self employment income, a full 2 years are needed as well.

If in doubt, call because sometimes talking with someone to run a scenario by them helps so you can prepare.

Crystal Beard
1 vote Thank Flag Link Mon Jul 19, 2010
Just to repeat what basically everybody else is saying. Work history is definately important but maintaining the same type of pay cycle is most important. Going from a salary paid position to a commission based career is a big "no no" in purchasing. I would highly recommend getting in touch with a Realtor who can direct you to their preferred Mortgage Banker/Broker to get you on the right track to obtaining home financing. but i would also do this quickly as the current interest rates are phenomenal!

Good Luck! and feel free to contact me if you would like to know who my preferred lenders are. I am more than happy to help.

Aaron Heard
503-752-7671
AaronHeard@JohnlScott.com
0 votes Thank Flag Link Wed Oct 13, 2010
Newbie,

Congratulations on preparing to purchase your home. You are taking pro-active steps to ask the right questions many buyer's forget to ask.

Yes, taking a different job in a new field would affect you lenders ability to qualify you. If you remain in the same field then I don't see a problem. I would double check with your Mortgage Broker, or Banker and find out what they have to say. Good luck on your purchase!! I hope this information is helpful.

Kimberly Kinville, Realtor
East Metro Specialist
503.841.0888
0 votes Thank Flag Link Thu Jul 22, 2010
It is not always necessary for the job to be in the same line of work depending on the pay structure, eg. wage, bonus, commission. What will matter are the automated findings, underwriting, and sometimes lender overlays. Other factors such as savings, credit worthiness, and debt ratios will allow findings to differ.

My advice regarding the financing is find a reputable lender to work with and be sure you are satisfying all areas of qualification not just income alone.
0 votes Thank Flag Link Tue Jul 20, 2010
I agree first and foremost, you need to speak with the lender about the job and prepare the lender that you will be taking a new job and your time frame to purchase is a year out. It will depend on the lender and guidelines and also, knowing your whole situation


Tori Weiss
Keller Williams Central Delaware
0 votes Thank Flag Link Mon Jul 19, 2010
Way to think ahead. When you get this specific - I would develop a relationship with a mortgage broker who will look at your finances as a whole and be able to give you the right answer. Yes, if it is in the same field you should be fine, but it may not have to be depending on the rest of your financial package.
0 votes Thank Flag Link Mon Jul 19, 2010
Hi Newbie,

Just make sure your new & better paying job is in the same field. I recently had a Buyer who couldn't qualify even though she had gotten a job that paid $25,000 more per year because it wasn't in the same field and she couldn't prove it was a permanent position. If the new job, even if in the same field, has a probation period, you may not be able to qualify until that probation period has ended.

Best of luck to you in your house purchase.
0 votes Thank Flag Link Mon Jul 19, 2010
Newbie,

Great question! Also, it's nice to see that you are thinking of these things first. In any case, check with your lender on this. If you do not have a lender, my team would be happy to help. You can reach me at: gboyd@primelending.com. If your new job is in the same line of work and has a similar pay structure, then you should be fine. Jobs that pay based on commission or primarily bonus income could create a problem if you don't have a history of receiving this type of income. Also, your lender will wanty to see that this is a permanent position. If your new emplyer hires you on with an initial "probationary period", then this may delay your loan approval. I hope that this helps a bit.
Web Reference: http://www.geoffboyd.com
0 votes Thank Flag Link Mon Jul 19, 2010
Newbie,
You definitely want to talk to a lender about this to see what he/she recommends.

However, it is my understanding that if you change fields when you change jobs, that could potentially hurt you. In other words, if the new job is a different kind of work from what you did previously, the lender doesn't have as much to go on.

Also, with unemployment at record high rates, you could be in a more vulnerable position if your new employer needs to make personnel cutbacks later. Good luck.

Warm regards,
Maggie Hawk, REALTOR
(386) 314-1149
Watson Realty Corp.
0 votes Thank Flag Link Mon Jul 19, 2010
As long as your job is with the same type of company and you are going to wait a year - a new job with better pay is the way to go. I think you will do very well. Just remember to keep your credit scores up also. Dont buy a new car, dont buy anything on a credit card you cant pay off, that type of thing. Thanks for asking and I hope you get just the home you want and love in about a year!
0 votes Thank Flag Link Mon Jul 19, 2010
Dear Newbie,

I'm not sure why you would want to wait a year. It is hard to answer without more information. But, my first answer would be to find an honest, qualified lender. They will be able to tell you guidelines for underwriting where employment is concerned. I work with several very good lenders, but the guidelines do not seem to be the same from one to another. Sometimes I'm told as long as it is in the same line of work, it doesn't matter. Sometimes I'm told you need a minimum of two years at the same company and so on............

Check with a lender and then get moving. Home prices are low and so too are interest rates. I'm not sure why you would want to wait!

Linda
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Mon Jul 19, 2010
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