Changing Jobs During the Mortgage Process

Lenders verify employment at application and again shortly before funding. If the answer changes between those two checks, underwriting starts over on the income portion of your file.

Changes that are usually manageable

• Same employer promotion or raise with a salaried structure
• New salaried job in the same line of work with a signed offer letter
• A transfer with continued employment and no gap in pay

Changes that create real risk

• W 2 employment to self employment or 1099 contracting
• Base pay replaced by commission or bonus dependent income
• A probationary period or a role with a defined end date
• A gap between jobs during the loan process

What the lender will ask for

1. 1.The signed offer letter with start date, pay structure and any contingencies
2. 2.A first pay stub from the new employer in many cases
3. 3.Written verification of employment directly from the new company
4. 4.An explanation of the reason for the change

Timing advice

If a job change is coming, tell your loan officer before you accept, not after. There is often a version of the timeline that works, such as closing before the transition or waiting for the first pay stub, but only if the conversation happens early.

Employment guidelines vary by program and lender. This is general education and not a commitment to lend.