It’s a New Year and some things are already changing so it’s off to the races.

For example, perhaps you just got a new job and you’re in the market to qualify for a new mortgage.

Did you know your new job may impact your mortgage application?

Here’s what you need to know with tips/suggestions from Wisebread.com.

Continuity Is Key

Lenders like to see financial and career stability. If you’ve recently changed jobs, no worries, provided your lender sees continuity.

For example, if your new job is in the same area you’ve been in for the past 2 years, the lender will probably find that acceptable. This is typically true if your new job is a promotion in title, responsibility, or salary.

If you took a pay cut, but stayed in the same area of work, the lender will most likely find this acceptable, that is if your new income is at a level that is appropriate for the size of the mortgage you seek, according to the website Wisebread.com.

Career Stability and History Matters

However, be aware that some lenders start to get uncomfortable when you move into a new field because they see it as a less stable work situation. Just be honest and upfront with your lender. Do explain how your previous experience is applicable to your new field. This could be in the form of your responsibilities, or similarity in the fields.

It may also benefit you if you can show that your education and/or other training aligns with your new job.

If possible, ask for a reference letter from your new boss to give to the lender.

Keep in mind when trying to obtain a mortgage with a lender, it’s just two people chatting. The lender will want to know who you are, what you do, and, of course, how you will repay the mortgage. With that said, be sure to try to the best of your ability to sound like a professional person with a steady job, suggest the website Wisebread.com.

What to Bring Along

In addition to a letter or contract, the lender will need other items to verify your income. If you have everything together before visiting the lender, your sense of organization and preparedness will work in your favor.

Bring:

  • Job offer letter with the details of start date, title, and compensation on official company letterhead.
  • At least two pay stubs.
  • The contact information for the human resources department since the lender will need to talk to someone at the company to confirm the information provided is legitimate.

Good Luck

A new job and a potential new home are certainly both great ways to start off the New Year. As you hunt for a mortgage, just be prepared to explain why you changed jobs and do have all the needed documents in order, suggests the website Wisebread.com. It’s also important to explore various lenders to obtain the best terms and rates as you move forward with trying to obtain a mortgage.