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Ghummaz Bhatti

What to Know About Switching Jobs When Applying for a Home Loan

Buying a home is a big step. It’s one of the most significant financial investments you can make. So there is an apparent reason most people wait until they’ve found a home before changing jobs. If you do find yourself in this position, where you have to get a new job during the process of buying a home, here are some tips on how to handle the situation.

Know the Nature of the Job You’re Planning on Taking

This may sound like a no-brainer, but it can make a difference when it comes to affordability. There are some jobs out there that have no downtime. There are jobs that require 24 hours a day, seven days a week. Those are the kinds of situations you want to avoid.

You don’t want to buy a house and then find out you have to move less than a year later because you have to find a job closer to the company you’re working for.

Know What to Show Your Lender

A lender is going to want to see a written job offer, and that can be the biggest problem. Finding a job that gives you a written offer right off the bat is going to be tough. You want to look for jobs that offer the ability to start and move on to a written offer later.

If you’re willing to start and then be transferred to a different region after a certain amount of time, that’s the best option. It shows you’re willing to work and willing to follow the company and help them out.

Know What Could Hurt Your Mortgage Application

There are a few things that could hurt your application should you decide to switch jobs when buying a home. Some of them are:

  • A lower salary: If your salary is going to be considerably less after the job change, chances are the lender is going to be a bit wary. You know there’s going to be less income coming in, and you’re going to need to readjust your budget accordingly.
  • Industry: A job in one of the industries on the high-risk list, such as in construction, manufacturing, or the airline industry, may be harder to secure financing. They do want to see a stable job and the secure income that comes with it.
  • Probationary period: The probationary period is the waiting period between being offered the job and signing the contract. It’s usually only a couple of weeks, but it could throw a wrench in the process.

When in doubt, ask your lender about moving jobs during the mortgage process. Or go with a lender who understands the situation and is willing to work with you. Either way, you want to find a lender that’s willing to work with you on your situation.

The Bottomline

In the end, if you make the right decisions, there is no reason you can’t buy a home even when changing jobs. Just make sure you’re talking with your lender and mortgage broker to make sure you’re going to find a job that’s going to match your home mortgage.

Ottawa Mortgage Services is your mortgage specialist in Ottawa. We also help with refinancing, pre-approvals, and debt consolidation. Get in touch with us today.

Contact Ottawa Mortgage Services to learn more

funding@ottawamortgageservices.ca

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