Can I switch jobs after closing on my mortgage?

Short Answer:

Yes, a borrower can switch employers after closing without any consequence.

Longer Answer:

The journey to homeownership is a significant milestone, often involving meticulous planning and financial scrutiny. But what happens if a new job opportunity arises shortly after you've closed on your mortgage? Can you switch jobs after closing on a mortgage for a home? The answer is yes, but there are several important factors to consider.

Stability is Key

Lenders prefer borrowers with stable employment histories. Stability in your job and income reassures lenders that you can consistently make your mortgage payments. While switching jobs after closing is generally acceptable, frequent job changes can raise red flags for future lenders if you plan to refinance or take out another loan. Lenders will want to verify that your new job provides a stable and sufficient income to meet your mortgage obligations.

Quality Control Checks

It's important to note that lenders often perform quality control checks after closing. During these checks, third parties review all the information provided during the loan application process was accurate and that there have been no significant changes in the borrower's financial situation. One way these third parities review files is request verification of employments from employers on the application. A job change could trigger additional scrutiny during these checks. While it may not necessarily jeopardize your loan, it could lead to further questions or documentation requests from your lender. You may be required to provide new paystubs or employment contract.

Consider the Timing

While switching jobs after closing is generally acceptable, consider the timing of your job change. If possible, it may be beneficial to wait until after your mortgage has been transferred to its final mortgage servicer.

Conclusion

Switching jobs after closing on a mortgage for a home is generally acceptable. On the off chance, your mortgage goes for a quality control review, you may be contacted to provide information about your new job.

Got questions about switching jobs after closing on your mortgage, email me at teamjd@mainstreethl.com

These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact me.

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