Yes, you may be able to buy a home after changing jobs.
A new employer does not automatically mean you have to wait two years before qualifying for a mortgage.
What matters is how you're paid, your employment and income history, whether your current income can be used to qualify, and the requirements of your specific loan program.
So if you've been putting off buying because you recently accepted a new job, don't assume you have to wait.
Does Changing Jobs Hurt Your Mortgage Approval?
Not necessarily.
A lender is going to look beyond the date you started your current job. The bigger question is whether your employment and income make sense as part of your overall financial picture.
For example, moving from one salaried position to another may be evaluated very differently from switching from a predictable salary to commission-based income.
The type of income matters just as much as the job change itself.
That's why two Denver buyers who both started new jobs last month could receive very different answers.
And if your income doesn't fit neatly into a traditional salary structure, read Can You Get a Mortgage Without W-2 Income in Denver?.
Do You Need Two Years at the Same Job?
No.
This is one of the mortgage myths I hear all the time.
Mortgage guidelines may require lenders to review your employment and income history, but that is not the same thing as requiring you to work for the same employer for two years.
What matters is whether your qualifying income meets the applicable guidelines and can be properly documented.
What If Your New Job Pays More?
A raise can certainly help your overall financial picture, but lenders still need to determine which income can actually be used to qualify.
If your compensation is straightforward salary or predictable hourly income, the analysis may be relatively simple.
But if your new compensation includes:
Bonuses · Commission · Overtime · Tips · Variable hours
the lender may need additional history before some or all of that income can be used to qualify.
For example, conventional guidelines may require an established history for certain types of variable income. Fannie Mae currently recommends a two-year history for bonus, commission, overtime and tip income, although a shorter history of at least 12 months may sometimes be considered.
So a new job paying more doesn't necessarily mean every dollar on your compensation package can immediately be used for mortgage qualification.
What If You Changed Careers Completely?
This deserves a closer look.
Changing employers within your established career field is one scenario. Moving into an entirely different line of work can create additional underwriting questions.
That doesn't automatically mean you can't qualify.
Depending on the loan program and your circumstances, additional documentation may be needed to establish the stability of your employment income. FHA's current Handbook, for example, contains specific employment-related income documentation and verification requirements.
The important part is evaluating the change before you start making assumptions about what you can or can't do.
Should You Get Pre-Approved After Changing Jobs?
Yes, especially before you start shopping.
Your pre-approval should reflect your current employment and qualifying income, not simply what you earned at your previous job.
And employment isn't something lenders only evaluate at the beginning. For conventional loans sold to Fannie Mae, employment income used to qualify generally requires verification again close to the note date.
That makes one rule particularly important:
If you're already under contract, talk to your mortgage professional before making another employment change.
A change during the mortgage process can require the loan to be reevaluated.
If you're wondering what comes after the initial approval, read Pre-Approved for a Mortgage in Denver: What Happens Next?.
The Bottom Line
Changing jobs does not automatically disqualify you from buying a Denver home, and you don't necessarily need to wait two years at your new employer.
The answer depends on your employment history, how you're compensated, the income being used to qualify, and your loan program.
Before you postpone buying for six months, a year, or even two years because you think your job change makes you ineligible, find out what your numbers actually say.
And employment is only one part of the picture. If you're trying to determine whether you're financially ready to buy, read How Much Money Do You Really Need to Buy a House in Denver?.
If you recently changed jobs and you're considering buying a home in Denver, I can help you look at your employment and income structure before you start shopping.
Did you change employers, change careers, or change the way you're paid?
Information is for educational purposes only and is not a commitment to lend. All loans are subject to credit approval, program guidelines, property eligibility, and underwriting requirements.