Thinking About Buying a House and Changing Jobs? Here Are the Factors to Consider
We’re in the midst of what experts are dubbing The Great Resignation, with people leaving their jobs in record numbers.
But what if you’re considering buying a home in the near future? Is joining The Great Resignation the right move for you, or is it better to wait until after you’ve purchased a home to make a major career move?
A recent article from realtor.com outlined factors potential buyers should consider if they’re considering changing jobs before or during their home search, including:
- Timing. Generally, switching jobs during the mortgage application process will cause more issues than changing jobs before you apply for a mortgage. So, if you’re thinking about switching jobs, try to make the change well before you buy a home. (The longer you’re in your new job before you apply for a mortgage, the better!)
- The type of job change. The type of career switch you make can also impact your ability to get a loan. For example, keeping the same job title and switching to a new company is generally looked at as less risky than changing careers altogether. If you’re thinking about making a complete career change (for example, transitioning from software engineering to teaching), you may want to consider waiting until after you’ve purchased a home.
- The financial impact. Another way changing jobs can impact your ability to buy a home is income. If your income or income structure is going to change (for example, if your new job pays less money, or you’re going to be switching from a salary to a commission structure), it could impact your buying power and/or make it harder to get approved for a mortgage.
Changing jobs right before or during a home search can complicate your ability to secure a mortgage—so before you jump into a new job, company, or career, consider how it might impact your home search.