Do mortgage companies frown upon a person new on the job?

Asked by Chris Taylor, Reseda, CA Fri Jan 28, 2011

I heard this on Property Virgins during one of the episodes I was watching. Is there some type of timeframe they look at wehn dealing a someone that just changed jobs?

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Tara L. Dieringer’s answer
Tara L. Dier…, , Austin, TX
Fri Jan 28, 2011
I work as a loan officer for a wholesale mortgage bank in Austin, Texas. Our guidelines state that you must have a minimum two-year work history in the same line of work. If there is a job gap of more than 30 days within that two year history, you may have a difficult time getting approved for a loan. It may be possible if you have strong compensating factors to offset the lack of work history and/or job gap. For example, if you have a second source of reliable income or enough assets in the bank...along with a high FICO score; an underwriter may be able to offset the lack of work history.

Another item to note: If you were self-employed and are now a full-time employee, then you will have a better chance of receiving an approval for a loan. If it is the other way around (full-time employee switching to self-employed), then you can almost count on the fact that you will have to wait for 2 years to receive loan approval.

It is always a good idea to check with a few different lenders in your area. I am sure that California Lending Laws differ from Texas Lending Laws.
1 vote
Harold Sharpe, Agent, Menifee, CA
Sun Jan 30, 2011
Hi Chris,
Yes there is a general rule.
2 years.
There is also something many do not know about.
Salary positions.
a Salary earner may sometimes get a loan in 6 months instead of two years.
Contact a local loan broker or two or three.
You will know when you run into an intelligent one willing to help you.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
California Department of Real Estate License # 01312992
0 votes
Catherine Be…, Agent, Lawndale, CA
Sun Jan 30, 2011
Yes, general rule of thumb is that an underwriter likes to see someone in the same job or career path for 2 years, there are several scenarios where you can still get financing. The factors that will influence that decition on the part of a lender.
Move up in the same line of work
Recent graduate with a solid job in their field of study.
Good credit history
10%+ downpayment
6 months reserves

Please contact me if you would like a referal to a mortgage lender who can help you.

Catherine Bedrossian
REMAX Home Sales Pro
(310) 383-4212
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Jan 29, 2011
Lenders want to see a 2 year track history with a company OR if you been self employed 2 years.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
Katrina Roth, Agent, Valencia, CA
Sat Jan 29, 2011
Hi Chris!

Property Virgins is such a great show. Sandra was absolutely right. While experience shows this to be very true, some lenders can still approve a borrower who has transitioned to a new job as long as they are working in the same career field. Typically, lenders require at least 2 years previous work history. Keep in mind, there are many other factors to consider that will allow for an approval. I work together with several leading mortgage brokers and loan originators here in Southern California. I truly enjoy working with first-time home buyers. If you ever need my services or a great lender referral, please don't hesitate to contact me.

Best Wishes!

Katrina Roth, Realtor
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Direct (661) 208-1855
Fax (661) 291-1463

*Serving All Of Your Real Estate Needs Throughout Southern California*
0 votes
Lance King, Agent, San Francisco, CA
Fri Jan 28, 2011
Perhaps some of the local realtors down there can post some lender recommendations. You should deal with someone who regularly does business in your area as all markets have their own little quirks.
0 votes
Richard Schu…, Agent, Los Angeles, CA
Fri Jan 28, 2011
Yes, especially if its a new line of work. If you change companies, but keep a similar job function then its not as big of a problem. Speak directly with a mortgage lender for a good answer for your personal situation.
0 votes
Lance King, Agent, San Francisco, CA
Fri Jan 28, 2011

As the others have indicated, as long as your job is in the same field as the old one you should be okay. However, how long between jobs can make a difference, and it also matters if you are a contractor or full time employee. We recently had a client who took a contract position in the same field for significantly more money but had to wait to get a loan because he wasn't an employee.

Talk with several lenders and get a solid pre-approval before moving forward.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Fri Jan 28, 2011
Hi Chris:

Generally Lenders want two years in the same field.

But there are exceptions, I know of a great lender.

Web Reference:
0 votes
Sindy Verdugo, Agent, Long Beach, CA
Fri Jan 28, 2011
If you have been in the same type of work it will not work against you, especially if you are moving up and making more money.

If you are into something totally different..... not so good. Seasoned is what the banks like. Your future earning will be judged on your past. Instability in the past could mean instability in the future...



0 votes
Renee Porter…, , Grove City, PA
Fri Jan 28, 2011
Hi Chris,
Most mortgage companies will want to see a minimum 2 year work history at your current job. Wish I had better news for you. Best wishes, Renee
0 votes
Jonas, , Houston, TX
Fri Jan 28, 2011
Hi Chris!

Great question. Usually a new job is not an issue if it is in the same field as your last job. If you were a teacher for 5 years and then got a job as a customer service rep...might be an issue. If you were in administration for 3 years but took a higher paying job with a different company, but it's still in administration, you should be OK. Please note, I am not a mortgage officer and really the best one to answer this is going to be the loan officer that you submit your application with.

Also there are several factors in getting a loan approval such as credit and income. All of these will weigh in on making a decision.

Best of luck to you!!

Jonas Mancuso
Remax / Lakeland
0 votes
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