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I am under contract to sell my home, all inspections done, just waiting on a closing date. I have been house hunting for months, received a pre-approval from my current Mortgage lender for a new Mortgage. Have a large amount of equity in my home that I will be using for the next home. I have a 740 credit score, a very low debt to income ratio of about 10%, and am looking at very inexpensive fixer houses, something I can make my own. At the very least my down payment will be 50-60% of the cost of the home, but more than likely around 75%.
The issue is I have now lost my job, through no fault of my own. I have been in the same industry for 17 years, but have spent the last 3 years also attending college to eventually move onto a different career path. I have already had several interviews and 2 job offers in the same industry as I have always been in. But they are corporate jobs, and they can take a month or more just to process all the paperwork to get a start date. On the other hand I was also offered a job in the career I have been attending college for, this job I would be able to to start next week, and would also be a slight increase in my income level, and much better benefits. Yet, I'm unsure what route to take and this is a decision I need to make pretty quickly.
My issue is, if I switch industries, what is the likelihood that I would still be approved for even a small mortgage? Or would I be better off sticking it out until I can get a start date in my current industry (I am currently receiving unemployment, and have extra in savings so i'm doing fine financially.) I had already planned on doing a short term rental if I was unable to find a new home before I have to be out of my current home, but really do not want to waste a year or two on rent if I can still find a home and get approved for a loan.
Many lenders are good with a switch of industry if you can prove your schooling and that you just finished, and received a new job in that area of study. New teachers, new doctors, new lawyers, are all examples of showing schooling and then a job offer letter. They will probably want a month of pay stubs to show you stuck it out more than a week, because lenders also get scared about career changes because many people decide they made a wrong decision.
Overall, if you show your schooling for the new career, have good down payment, and good credit, you shouldn't have an issue. Talk with the mortgage guy sooner rather than later.
It's really hard to answer your question with the information given. It is quite possible your schooling can count as "time in field." And then, maybe not. It's also possible your new field can be bridged to the old. I understand the desire to maintain privacy on the web and speak generally, but just because we say something is possible, your lender may not buy into it.
Feel free to dm me specifics and if I can help structure your approach to your mortgage company, I am happy to.
Last edited by SmartMoney; 10-14-2014 at 06:58 AM..
Reason: answered phone and the 1st 2 words of my response posted!
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