Can You Get a Mortgage With a New Job?

Obtaining a mortgage with a new job is frequently possible, despite common misconceptions. Lenders assess various factors to determine eligibility, focusing on employment stability and income consistency. The ability to qualify often depends on specific criteria.

Lender Employment History Requirements

Mortgage lenders typically examine a borrower’s employment history to gauge their income stability and ability to make consistent mortgage payments. A common guideline involves assessing a two-year employment record, as this timeframe helps lenders confirm a reliable income source. Lenders generally consider W-2 employment with consistent salaries or hourly wages as stable income.

The purpose of reviewing past employment is to predict future income reliability. Even if an applicant has not been with their current employer for two full years, lenders will often collect information on previous employers and the applicant’s line of work to understand income trends. This assessment of employment stability helps lenders evaluate the risk of extending a mortgage.

Verifying New Employment and Income

When a borrower has recently started a new job, lenders employ specific methods to verify employment and income. A signed offer letter is a primary document, detailing the salary, start date, and position. This letter serves as proof of future income. Lenders generally prefer the start date to be within 90 days of the loan closing date.

Once employment begins, the first pay stub confirms the borrower has started the job and is being paid as expected. For income verification, lenders may also request W-2 forms from previous employers to establish a history of earnings and demonstrate continuity of employment. Direct contact with the employer is a standard practice to confirm employment status, job title, and income, requiring the borrower’s authorization.

Different income types from a new job are evaluated distinctly. Fixed salaries are generally the most straightforward to verify and are considered highly reliable. For hourly wages, lenders verify both the hourly rate and the typical number of hours worked. Income from commissions, bonuses, or overtime usually requires a longer history, often one to two years, before it can be fully counted towards qualifying income.

Common New Job Scenarios

Job Change in the Same Field/Industry

A job change within the same field or industry is generally viewed favorably by mortgage lenders. This includes promotions, lateral moves, or similar roles at a different company. The continuity of skills and experience suggests ongoing income stability. Lenders often perceive such a move as a positive career progression, especially if it involves a similar or improved salary. This type of transition is less likely to negatively impact a mortgage application.

Job Change to a Different Field/Industry

Transitioning to a different field or industry can present more challenges for mortgage approval. Lenders may view such a change as an indicator of less stability. It is important to provide a clear rationale for the career shift and demonstrate your ability to succeed in the new profession. Lenders will scrutinize the new income structure and may require additional documentation.

Recent College Graduates

Recent college graduates often receive exceptions to the typical two-year employment history rule. Lenders recognize that education can serve as a substitute for work experience when the new job is in the field of study. To qualify, graduates generally need to provide a copy of their diploma and college transcripts. A written job offer is also essential. Some loan programs may allow approval as soon as 30 days from the start of the new job, with the offer letter and initial pay stubs.

Starting a New Job (Not Yet Started or in Probationary Period)

Applying for a mortgage when a new job has not started or is within a probationary period requires specific considerations. If the job has not started, the lender typically requires a non-contingent offer letter and that employment begins before or shortly after closing. Many lenders require the start date to be within 60 to 90 days of the closing.

If the borrower is in a probationary period, lenders may view this as a period of employment uncertainty. Some lenders may require the probationary period to be completed before finalizing the loan. They often conduct a final verification of employment shortly before closing. Certain lenders are more flexible and may approve a mortgage during probation, especially with a strong employment contract or prior experience in the same field.