We have an accepted offer on our house. We are currently looking to buy a different house. We went through the pre approval process for a new mortgage and were approved to a certain dollar amount. That being said I am also looking to take a new position at a different company. The new job has a higher rate of pay and we would not want to increase our pre approval amount. Would a job change cause an issue with getting a new mortgage?
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Any employment change could cause an issue. Lenders like to see how long you've been at a job and want to see the most recent paystubs, and any approval would be conditional. Just before closing they may ask for yet another paystub. It would be best to talk to the lender before accepting the new job to make sure you continue to meet all their approval conditions.
That said, with proper documentation and higher income, it could work out just fine.
Rocky
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When I bought my house, I found that most mortgage lenders in the UK required you to have been at your place of employment for 3 months (presumably so you're past your probation period).
This was a problem for me as I too had only been working at the company for 6 weeks. If I remember right, the lender I used in the end called up my employer to get a reference from them.
All of the lenders I looked into had these terms outlined in their terms and conditions on their website so it would be best to check for your own circumstances.
Sayse
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In general, mortgage lenders do frown upon borrowers getting a new job right before buying a house. There is a certain level of risk that taking on a new job entails.
Will you like the job? Will they like you? Are you secretly under-qualified for the position and just "faking it till you make it"? Is the company a stable source of employment? Will stresses of the new job seep into your life and cause you to make poor financial decisions? Are you getting a mortgage simply because you expect to make more money? Will you be on probation at the new job?
With all of this said I applied for a mortgage about 2 years ago and was working at my company for about 3.5 years and the lender seemed a bit apprehensive about this employment duration.
They ended up asking me how long have I been in my field of work (web development), to which I replied X years. This put the lender at ease because it showed them that I am stable in my field of work. In the end I was approved for the loan. About a year later I got a new job.
MonkeyZeus
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Yes - changing jobs is a big impact on the approval process.
Any answer on stack exchange has little value. You should be in contact with the loan officer who gave you the pre-approval letter. He/she can tell you exactly what the impact is.
I changed jobs at the same time I bought a house. In my case, the lender knew I was changing jobs, she knew that it was the same type of work (also important), she also required a copy of the offer letter.
Your finance officer will work you through this, but start that conversation now.
Paul
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