changing jobs and getting a mortgage (rate, lenders, wage, purchase)

[BJW50]

My youngest son is looking to purchase a house. Eight months ago, his hours were cut by his former employer. So he found a new job with his current employer that pays better. He's concerned that it might impact his ability to get a mortgage.

[chet everett]

Really depends on some subtle things -- if he has been in the same line of work for several years that is a big plus. If there was an extended (more than a month or so...) period of unemployment that is a negative. If the overall earnings were higher before because of lots more hours that offsets a higher wage rate at normal / full time hours. Getting VERY high hourly rate for far less than full time hours would be a converse negative... Some lenders got into trouble using things like "job title and the emphasis lately is comparing the actual wages / salary and details of hours worked.

[VictorBurek]

As long as he didn't go from a W2 paid job to a commission paid or self employment, your son should be fine assuming he didn't have a long period of unemployment between jobs.

[BJW50]

Originally Posted by chet everett

Really depends on some subtle things -- if he has been in the same line of work for several years that is a big plus. If there was an extended (more than a month or so...) period of unemployment that is a negative. If the overall earnings were higher before because of lots more hours that offsets a higher wage rate at normal / full time hours. Getting VERY high hourly rate for far less than full time hours would be a converse negative... Some lenders got into trouble using things like "job title and the emphasis lately is comparing the actual wages / salary and details of hours worked.

He's in the same line of work. He was working the same hours at his former employer, before his were cut, as he is with his current employer. His current employer pays him more per hour. His LO said to write a letter of explanation just to be safe. He is meeting with the LO today