When looking to qualify for a mortgage, one of the primary requirements is a steady/consistent job history. This does not mean that you have to be working for the last two years. In fact, you can qualify for a mortgage even if you are starting a brand-new job or if you have recently entered the workforce.
The documentation process is simple. Typically, a fully executed offer letter or contract is sufficient. This offer letter/contract must include the following items:
- Job Position/Role
- Income/Pay Structure
- Start Date
- All contingencies met as stated in the offer letter/contract
The start date is important since you need to start the new job within a certain amount of time from the closing of the mortgage loan. If you are looking at a Conventional or Jumbo loan, you will need to start the new job within 90 days of closing whereas FHA and VA loans require the borrower to start within 60 days of when the loan is closed.
In addition to the offer letter or contract, a Verification of Employment will also be required. If you are using bonus or commission income, a Verification of Employment from your previous employer may also be required.
Last, you will be required to show assets as reserves. You will need to have sufficient reserves to cover your full housing expenses including, principal and interest, property taxes, insurance, and HOA dues along with the expenses included in your debt-to-income ratio from the time of closing to the start of your new job.
For example, if you close on August 1st and your new job starts on October 1st, you will need to have 2 months of savings left over (in addition to the cash needed to close).
If you have any questions about how a new job may affect your ability to qualify for a mortgage, give our office a call at (760) 930-0569 to talk to one of our Mortgage Loan Consultants.
