Lenders examine several factors when evaluating your mortgage application, with employment carrying significant weight. In general, they want to see that you’re well established in a job that provides a reliable, steady, and sufficient source of income.
Starting a new job doesn’t have to be a hurdle for getting a mortgage. In fact, it’s possible to get a mortgage without two years of work history — it just might take a few extra steps.
Getting a Home Loan Without Two Years of Work History
When you apply for a mortgage, your lender needs to be reasonably confident that you’ll be a responsible borrower. Loan underwriters look at factors such as borrowing history, credit score, income, and employment. Employment carries enough weight that lenders typically require two years in the same job to demonstrate stability.
However, that’s a general guideline — not a hard rule.
Generally speaking, recently changing positions within the same company or moving to a higher-level role at a new organization is less of a concern than switching to an entirely new field or having a gap in employment of six months or more.
In many cases, even borrowers without two years of work history can still qualify for a mortgage. For instance:
- A recent college graduate may qualify based on a verified job offer and a high salary.
- Recently discharged military members can typically receive a waiver if they’re starting work similar to what they did in the military.
- A documented medical condition that prevented you from working may qualify for an exception with supporting documentation from a physician.
- A strong credit score or low debt-to-income ratio may be enough to offset limited work history on its own.
Changing Jobs While Getting a Mortgage
When it comes to getting a mortgage with a new job, timing matters. You’re in much better shape if the job change occurs before you apply.
Job Change Before Applying for a Mortgage
If you started a new job shortly before applying for a mortgage, you’re likely still in good shape. It comes down to factors like the reason for your job change, whether you received a promotion, and whether your income has increased.
In general, if you can demonstrate a history of reliable employment and a reasonable expectation of continued income, lenders will be more inclined to approve your application.
Ultimately, it depends on the lender’s underwriting criteria. If one lender declines your application, it’s worth trying another — requirements vary.
Job Change After Applying for a Mortgage
Changing jobs after you’ve already applied is a different story. The period between your initial loan preapproval and your closing date is particularly sensitive.
During this time, your lender is scrutinizing your financial picture to confirm that it accurately reflects your situation at the time you’ll begin repaying the loan. Any significant change — whether it’s opening a new credit card or starting a new job — can cause the lender to restart the underwriting process.
That doesn’t necessarily mean a job change will disqualify you. But at minimum, it will likely slow things down and delay your closing date. If at all possible, it’s worth holding off on a job change until after you have the keys in hand.
Changing Jobs While Buying a House
Despite your best efforts, you can’t always time a job change perfectly. If you find yourself switching jobs mid-transaction, here are a few things you can provide to improve your chances of staying on track:
- Employment letter: A letter from your new employer confirming your start date, job title, and salary may be sufficient for your lender.
- Verification of employment (VOE): In some cases, your lender may require a more formal verification — either via phone call or written confirmation — including a statement that your employment is expected to continue.
- Recent pay stub: If you’ve already started the new job, a recent pay stub provides additional confirmation that you’re employed and earning sufficient income.
Providing this documentation can meaningfully improve your chances of approval despite a recent job change. And regardless of your employment situation, a strong credit score and low debt-to-income ratio go a long way toward showing lenders you’re a low-risk borrower.
Already a homeowner and thinking about refinancing? Whether you’re looking to lower your rate or tap your equity, Refi.com can help. See if you qualify for a lower rate or start your application with Refi.com today.
