The #1 thing not to do–do not make any major purchases of any kind. Do not buy furniture, appliances, electronic equipment, jewelry, cars, expensive weddings or vacations, etc. You do not want to create debt of any kind.
Don’t move your money around. You will need to verify funds and the mortgage underwriter will probably require a complete paper trail of all your withdrawals and deposits. Moving your money could make it more difficult for your lender to properly document.
Changing jobs usually doesn’t affect your ability to qualify for a mortgage loan. However, there are situations that can be disastrous to your loan application.
If you are a salaried employee, switching employers should not create a problem. Just make sure you remain in the same line of work.
If your income is based on hourly wages and you work a straight forty hours a week, changing jobs should not create any problems.
If a substantial portion of your income is derived from commissions, you should not change jobs before buying a home.
If a substantial portion of your income on the new job will come from bonuses, you may want to consider delaying an employment change. You need to have a two-year track record necessary to count bonuses as income.
If you earn an hourly income but rarely work forty hours a week, you should not change jobs. There is no way to accurately calculate the hours you would work on the new job, therefore, no way to calculate your income.
Overtime income cannot be determined if you change jobs. You can receive credit for overtime only if you have been at the same job for at least two years.
If you are self-employed, do not consider a change. Lenders need to see a two-yer track record of self-employment income.
Here are several other good reasons to delay a purchase:
If you will have to sell in a short amount of time, you may end up having to come up with cash out-of-pocket to sell your home. Time is needed for a property to appreciate enough to cover the cost of buying and selling a home.
You may want to delay buying a home if you have just moved into an area you are unfamiliar with. Generally a better decision can be made if you wait awhile.
If you job future is uncertain, it might be best to wait to buy a home until you have a clearer view of your future for the next few years.
If you are having marital problems, a new house may not resolve your problems but could add to the financial burden in n already difficult situation.
If you have any questions, please call 304-822-4350.
Until next time,
Sandra Hunt, Broker
ABR, ABRM, AHWD, CRS, GRI, SFR, SRES
Hunt Country Properties
