Should You Change Jobs Before Buying a Home

by Vincent Yim on February 9, 2012

While changing jobs barely any one of us give due consideration to how changing jobs can affect on purchasing a home. Though a giant majority may remain untouched by changing jobs in this respect, some will feel the heat as their house loan applications may not qualify due to changing jobs.

Among salaried staff, if you don't earn extra pay from overtime, bonuses or commissions, changing jobs won't prove far too much of an issue especially if you stick to the same line of job. In reality if you're earning a higher income than your previous one, it'll improve your odds of a successful home loan application. Similarly, if you earn your salary on an hourly basis for a straight forty hours a week without any overtime, then also you stand a good chance of qualifying for the house mortgage.

However , commissioned and part-time employees should give careful consideration to their situation before changing employment because mortgage lenders are a bit chary of extending loans in such an eventuality. This is thanks to the fact that, if you are a commissioned worker, your earnings depends mostly on the commissions earned and mortgage lenders tend to take into account your average commission in the last two years.

When you're changing jobs, there's a doubt about your future commissions even if you are in the same type of work and have the same commission structure. The negative impact stands true for part time employees also since there is not any exclaiming how many hours you'll be ready to work each week on the new job and therefore , the average income becomes almost impossible to calculate.

Staff whose income is derived mostly from bonuses should also not be in a haste to switch jobs if they wish to secure mortgage loans. This is because of the fact that future bonuses are hardly ever considered by mortgage lenders unless those bonuses have been received from the same job during the last two years. If you earn your income from working over the course of time your qualifications for loan applications become poor if you change jobs since your future earnings are uncertain. They may or not be at par with your present earnings since all companies have their own techniques of coughing up for overtime.

You also adversely impact your probabilities for a house loan if you are switching over to self-employment because banks would like to see a 2-year track record for self-employment earnings before approving a home loan. If already self employed and considering switching your business from sole proprietorship to partnership, you must delay it if you wish to secure a mortgage.

This post – Does changing jobs affect loan application is created by Vincent Yim, he's one of the most renowned Malaysia real estate agent specializing in Bukit Jelutong and Denai Alam luxury market. Simply login to www.VincentYim.comto use the latest properties for sale or rent listings and features community info, free reports, answers to ordinarily asked real estate questions and more.

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