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I will likely soon be accepting a new job with a new company in a different part of the US.
I have never applied for a mortgage during a job switch. Will there be any difference in income requirements / verification than in my previous mortgage where I had been employed with one company for an extended period? Do my past W-4s even matter? Will an offer letter with confirmed salary be enough or will I need several months of actual paystubs first?
As background, I have a credit score of 770 and will be paying 40-50% of new home value as a down payment so my mortgage would likely be very low risk from a lending perspective.
Are you receiving relocation benefits? I will assume not since you didn't mention it. Are you in the process of selling a house? If it's not sold, you will need to qualify with both payments. Offer letter is a big player. If you are to be bonused, and it is not a guaranteed yearly bonus, then, if and only if you are in a very similar position in the same line of work, the past 2 years' bonus will be averaged. This is not likely, so the guaranteed salary will be used as your gross income. Cannot use Trailing Spouse income. Conventional loans require paystub(s) covering 30 days. FHA allows for just the first paystub, but your DP places you in conventional territory.
Typically, I'd think you'd be in temp housing during the contract period, while working at the new gig, and by the time that 30-45 days of Contract Escrow has passed, you would have recieved paystub(s) covering that first 30 days of employment. The paystub can be added to the file a few days before closing, so you can line everything to sync up with that.
You will be fine. Your down payment and credit score speaks volumes. The typical approval calls for one month's paystubs. With an employment contract, a written employment verification could be used, or, your offer letter and paystubs post closing.
Don't let anyone get you rattled with what they need....that's the difference here, just because they need it, doesn't mean everyone else will.
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