Starting a new job won’t automatically disqualify you from getting a mortgage, but you can raise some red flags for your lender. If you’re thinking that if I’m just starting a new job, I’ll be able to get a mortgage, the good news is that it’s possible. However, there may be some additional steps to demonstrate financial stability and reliability as a borrower.
This Redfin article explains how job changes affect the mortgage process and what lenders are looking for.
Why lenders are interested in the history of their work
When you apply for a mortgage, the lender wants to know that you can make your monthly payments. One way they evaluate this is by looking at your employment history.
Ideally, they want to see consistent income over the past two years – usually within the same employer or industry.
Can I qualify for a mortgage right after starting a new job?
Yes, but it depends on your situation. Here are how different scenarios affect your mortgage application:
1. Same industry, similar roles
If you switch to new jobs in the same field, especially wage increases, most lenders don’t consider it a problem.
Example: For nurses who have just moved from one hospital to another, your consistent career path shows stability.
2. Changes in different industries or careers
If you change the industry completely, lenders may want more documentation to understand the transition.
If your field is completely new, please provide a letter providing your first salary or start date instructions for your salary and terms of employment
3. Probation period
If your new job has a probationary or probationary period, the lender can wait until it is finished before approving your mortgage. Some people either accept the terms or ask for additional income documents.
If you are just starting a new job, what will your lender look for?
If you switch jobs recently, here are the things that lenders would normally want to see:
Signed offer letters or proof of employment contract income (such as pay stubs or direct deposit records) Employment stability (consistent career or strong resume history) Good credit score Low debt-to-revenue ratio savings or emergency reserves
What happens when you buy a house and change jobs?
Changing jobs during the home buying process can make things complicated, but it doesn’t necessarily derail your mortgage application.
Changes in employment after pre-approval of mortgage
If you switch jobs after being approved in advance, the lender will need to be free to earn and hire your income. This can delay the process, especially if:
You change industry Your new income is low or unstable You have not yet started a new position
Always notify the lender immediately if you change your job after pre-approval to avoid surprises.
Change jobs before closing your house
Changing jobs just before closing can be risky. Most lenders will perform a final employment verification a few days before closing. If they can’t confirm your employment or income, it could delay or cancel the closure.
Tip: If possible, don’t change jobs after closing your home. If changes are inevitable, we will maintain all our documents and work closely with our lenders to update files quickly.
Exception: Special Loan Program for Recent Job Changes
Some loan types are more flexible than others:
1. FHA loan
The Federal Housing Administration (FHA) allows applicants to qualify with less work history, especially if they can prove their future income or recent graduation.
2. VA loan
If you are a veteran, VA loans are flexible if your new job matches your past employment and military service.
3. Traditional loans
These tend to be more stringent, but if you meet your income and credit requirements, they can work in your new job.
Tips for getting a mortgage after starting a new job
Here’s how you can improve your odds if you have recently switched jobs:
Wait until you receive your first salary. Get a strong employment confirmation that shows job safety and salary. Avoid major financial changes (such as buying a car or loading debts) during the approval process. Maintain or improve your credit score. Work with lenders who understand your situation and are well versed in various loan programs.
Can I get pre-approved for a mortgage in a new job?
yes. If you can document your new income, you can pre-approve your mortgage. Many lenders accept the letter of offer as proof, especially if they are signed and are beginning within 30-90 days. However, it may delay final approval until it is officially launched.
What would you do if you were a self-employed or a freelancer?
Self-employed borrowers typically require at least two years of income history to qualify for a mortgage. If you’re just starting out with freelance or gigs, it can be difficult to get approval right away.
Tip: Consider waiting until you file a two-year tax return or exploring a bank statement loan or other non-traditional loan options.
Final Thoughts: It is possible to get a mortgage in a new job, with proper preparations
Starting a new job doesn’t mean that homeownership is out of reach. If you can demonstrate stable income and strong financial habits, many lenders will still consider your application. Be prepared to provide additional documentation. And work with a lender who understands your unique path.
