Job-hopping is a common practice nowadays, with the average person changing jobs 10-15 times in their lifetime. If you’ve recently gone through a mortgage closing and are considering switching jobs, you may be wondering if there’s a waiting period before you’re able to do so. The answer isn’t as simple as you might think. Below, we’ll explore the ins and outs of job-switching after closing on a mortgage.
Your Mortgage Lender Wants to See Job Stability
One of the primary factors that lenders look at when considering a loan is your employment history. They want to see that you have a stable job and income before they approve you for a loan. This is why most lenders require that you have been employed at your current job for at least two years before they’ll consider lending to you.
If you switch jobs before your mortgage closes, your lender is likely to put your loan application on hold until you’ve been employed at your new job for at least two years. This could delay your closing date by months, or even force you to reapply for your loan altogether. Therefore, it’s generally best to wait until after your mortgage has closed before switching jobs.
Exceptions to the Rule
Of course, there are always exceptions to the rule. If you’re in the military or are self-employed, for example, your employment history may not be as clear-cut as someone who works a traditional 9-5 job. In these cases, lenders may be more willing to work with you if you switch jobs before closing on a mortgage.
It’s always best to talk to your lender directly if you’re considering switching jobs before closing on a mortgage. They’ll be able to give you specific advice based on your situation.
As a general rule of thumb, it’s best to wait until after your mortgage has closed before switching jobs. Lenders want to see job stability when considering a loan, and most won’t approve mortgages for applicants who have switched jobs within the last two years. There are exceptions to this rule—such as for those who are self-employed or in the military—but it’s always best to speak with your lender directly before making any decisions.