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You receive a fantastic job offer while under contract.
More money.
Better company.
Shorter commute.
Congratulations.
Now call your lender before you resign from your current job.
A job change does not automatically destroy a mortgage.
But employment and income are central parts of underwriting.
Changing them during the transaction can require additional review.
“BUT THE NEW JOB PAYS MORE”
That may be excellent.
The lender still has to determine whether and how the new income qualifies under the loan program.
A higher salary can still require:
- Offer documentation
- Start date verification
- Employment verification
- Additional underwriting
THE TYPE OF COMPENSATION CAN CHANGE EVERYTHING
Moving from:
Salary to a higher salary
may be different from:
Salary to commission.
W-2 employee to independent contractor.
Employee to self-employed.
Guaranteed income to variable income.
Those changes can alter how income is calculated.
WHAT IF YOU HAVE NOT STARTED THE NEW JOB YET?
Tell the lender.
Some programs may allow qualifying based on future employment under certain conditions.
Others may require additional documentation or timing.
Do not assume.
WHAT IF YOU ALREADY QUIT?
Tell the lender immediately.
Hiding the change is not an option.
Employment can be reverified before closing.
LISA NEEDS TO KNOW TOO
If financing timing changes, the purchase contract may be affected.
Lisa may need to communicate about:
- Closing date
- Financing contingency
- Extensions
- Other contract issues
Problems are much easier to manage when everyone knows about them early.
Apply the same discipline to everything else with what not to do before closing.
