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How long would I have to be in a position that is a career change, prior to applying for a mortgage? For example, going from accounting to healthcare. Most of the online articles I found pertain to job changes rather than career changes.
Down payment? Did you spend time going to school for the change to healthcare? Time in schooling may be applied to time on job. Are both jobs entry level? Your loan officer can make a note in your file and bridge the two (if possible). And finally, we would ask if you ever did health care in the past.
There's no set required time on a conventional loan. Last check VA & FHA required 6 months. It also depends on the new employer's verification of employment. Did they put "90 days probation?"
Mileage varies at all lenders. Some get more creative than others.
(Reason I ask about down payment, mortgage insurance has their own rules).
Let me ask, are you trying to qualify with commission and bonus income? If so, we would need 2 years proof of receipt. If not, we just need to document 2 years of work history. What any lender is going to ask you for is:
- Your two most recent paystubs
- W-2 forms covering the most recent year if you have been on the current job at least 2 years or, in your situation which is completely normal, W-2 forms covering the 2 most recent years.
So to be clear, the Underwriter would need your two most recent paystubs and 2 years worth of W2's. If there were any gaps in employment over the last two years longer than 1 month, the Underwriter will need a very simple letter of explanation. Those can be written out by you, the Borrower, on a piece of paper and can be very simple. An example would be, " When I quit my job in accounting I didn't have a new job lined up quite yet. By the time I interviewed and hired for my new career in healthcare, it took about a month." You can say almost anything really.. And if they hassle you on the career change which they shouldn't, newsflash, were all in the customer service industry. You went from taking care of people in accounting to taking care of people in healthcare. Everyone plays a role in customer service. Without customers, we have no business.
Good luck and let me know if you have any questions at all.
Let me ask, are you trying to qualify with commission and bonus income? If so, we would need 2 years proof of receipt. If not, we just need to document 2 years of work history. What any lender is going to ask you for is:
- Your two most recent paystubs
- W-2 forms covering the most recent year if you have been on the current job at least 2 years or, in your situation which is completely normal, W-2 forms covering the 2 most recent years.
So to be clear, the Underwriter would need your two most recent paystubs and 2 years worth of W2's. If there were any gaps in employment over the last two years longer than 1 month, the Underwriter will need a very simple letter of explanation. Those can be written out by you, the Borrower, on a piece of paper and can be very simple. An example would be, " When I quit my job in accounting I didn't have a new job lined up quite yet. By the time I interviewed and hired for my new career in healthcare, it took about a month." You can say almost anything really.. And if they hassle you on the career change which they shouldn't, newsflash, were all in the customer service industry. You went from taking care of people in accounting to taking care of people in healthcare. Everyone plays a role in customer service. Without customers, we have no business.
Good luck and let me know if you have any questions at all.
Thank you,
Steve Z
No commission - hourly wage, full-time (same hours every week). I do have an employment gap from when I was taking care of my mother who has since passed. I had trouble finding work after she died. Prior to that, I was at the same job for 7 years. But I guess they won't really look at that since it was awhile ago? They will only look at my last 24 months?
You are correct, they will only look at the last 24 months. For the record, I've read many LOE's that illustrate exactly what you went through with your Mother's passing and that is 100% acceptable and highly commendable for that matter. My Mom went through the same thing when she helped my Grandpa take care of our Grandma that passed away and I know it can take quite the toll. Please let me know if you have any questions at all. I am a Processing Manager in AZ for the 2nd largest lender in the US and I train all of our new employees. My goal is to simply help others so feel free to ask away!
Thank you,
Steve Z
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