When it comes to the matter of job changes, it is best to avoid alterations in your employment status until after a home purchase is complete. Here’s my advice on this kind of situation.
Today I’d like to go over what you need to know about undergoing job changes while trying to obtain a mortgage.
First, what happens if you transfer from a being a W2 employee to being self-employed or to a 1099 status?
Especially when you take on a 1099 status, most lenders are going to want to see two years of your commission before they give you a loan.
I was recently having dinner with someone whose employer informed them that they would be changing positions from a W2 to a 1099 employee. On top of that, this person was in the middle of the home buying process. This presents a major issue.
My advice to this person was to wait until the home purchase was completed to change their job status.
When it comes to other kinds of job changes, like moving within a company to another W2 position, the situation is less critical. Nevertheless, it’s still important to speak to your lender about any such developments.
Keeping your lender in the loop on changes in your life is very important to the success of your home purchase. Anything that could threaten or change your ability is something your lender needs to know about.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.