If you are looking to purchase a home sometimes life altering decisions to be made such as should you stick with the job you have currently or would a change be good?
For example if you are a salaried employee who doesn't earn any additional incomes such as bonuses or commissions switching work shouldn't play a huge impact on your ability to make your loan payments if you have already been approved. Especially if you are able to earn a higher salary else where which could help assist you in qualifying for a mortgage. The more you make the better your odds are of being approved.
Also if your income based and are able to work a full 40 hours per week, switching jobs would run about the same if your salary is comparable or more to what your currently making.
However, if your a commissioned employee or receive bonuses it could cause an uncertainty in whether or not you will be approved for a home loan. The reason being is that if a substantial portion of an individuals income comes from bonuses or commissions then who's to say with a career change also comes a decrease in the amount they are earning based on these two sources. If lenders are unsure about your ability to make your loan payments on time it can decrease the amount that you will be approved for if at all.
Other types of employment that should be thought over before changing jobs is part-time employees and those who often work over-time. For those who only work a few hours a week its not going to make a huge difference whether you change or not if you are able to make the same amount else where. If you can gain more hours by changing jobs then it would be a wise decision to do so. For those who work over-time this can be a benefit for you when applying for a home loan. Most lenders will calculate your over-time earnings for a two year period and add it into your monthly earnings.
Before changing jobs make sure to think over if and how it will impact the home loan process.
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Gary Allalouf- RA
Hawaii Realty International
Mortgage Articles
Hawaii Mortgage Basics
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