Thinking about switching jobs mid-mortgage? It can delay or kill your closing. Here's exactly what happens and how to handle it.
Why Job Changes Matter to Lenders
Lenders verify employment right before closing. Any change triggers a re-evaluation of your ability to repay the loan, potentially causing delays or denial.
What Happens If You Switch Jobs
New employment verification required, possible re-underwriting of the entire loan, risk of denial if new income is lower, and potential delays of 2-4 weeks.
Same Industry vs. Different Industry
Staying in the same field with equal or higher pay is the least risky. Switching industries, going from salary to commission, or taking a pay cut are major red flags for underwriters.
How to Handle It
Notify your loan officer immediately. Provide new employment documents as soon as possible. If possible, delay the job change until after closing.
Every borrower's situation is unique. The guidelines above are general — speak with a licensed loan officer to understand how they apply to you specifically.
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