The Effect Your Employment Status Can Have On Your Mortgage Loan

Switching jobs regularly can have a huge impact on an individual when applying for a mortgage, this is because mortgage companies look into the financial stability of the person, i.e. how well they are able to upkeep themselves, how long one has been working for in a company, etc. In most cases, a minimum of two years is a safe bet for the applicant to be given the mortgage loan. Take note on how your employment status can determine your chances of getting a mortgage.

#1. Your Current Job Aligns With Your Field Of Study

Although some people might not see this as a big deal, mortgage lenders pay attention to the type of job the applicant is currently employed in and how it relates to one academic/practical training. A good match indicates better chances of securing a mortgage as it is seen as a sign of stability.

#2. Switched Jobs Within The Same Career Field That Pays Less

If an applicant is currently working at a different firm compared to their previous working place and earning way less than before when it comes to salary or wages, that won’t tend to be a problem when being granted a mortgage. The lender can still be able to give the borrower a mortgage loan as long as they are able to match up to the financial requirement.

#3. Change Of Job Different From Career Field 

A potential applicant who has switched from their previous job and working in a particular field totally different from what they studied or specialise in while in college/university, it becomes a questionable situation that would decrease the chance of them getting their mortgage loan approved by the lender, thus it is always best to work in the same field one took up as a course study.

#4. Not Having A Permanent Job

Getting a fixed salary per month will be able to qualify an application for the mortgage loan, as a guarantee that you will be able to pay back, come what may. The lender will not accept an application from one that does not have a permanent job nor a fixed salary, this will undoubtedly prove the financial status of the person is not stable enough for them to be given a mortgage loan.

The key to getting an approved mortgage is by making sure all the necessary documents are provided to be able to prove one’s employment status and current job, including their earning history which will determine the outcome of the mortgage loan being granted. If one is thinking about changing jobs, it is better to secure a mortgage loan funding before making that decision.