We're just starting to think about applying for a mortgage loan. My credit is very good and I've always had a solid work history. In the past, I've only left jobs to accept better opportunities.

My question relates to wanting to look for new employment. I do feel its time to move on in the work place. I'm sure mortgage companies look at employment history, but would it look bad if I had a solid history but left one job for another?

Ex: If I secured a new (better) job and 2 months later look for a loan, would that hurt me?

Thanks for any insight :)

Job stability is definitely a factor. Even if you have been continuously employeed, but for short terms, that will lower your credit score and any lower score can affect your interest rate.

On the other hand, you might not want to look until you know where you will be working.

Yep... just wondering if I should wait longer before I look for a new job. I guess I need motivation to stay. ;)

The only thing id mention is a matter of petty wording. Credit score versus the rating the lender may give you.

My understanding is that your credit score is NOT affected by your employment history... technically. That is, the credit bureau does not consider whether you have had four jobs in a year or one job for forty years when calculating your score. So you shouldn't fear that your credit score will drop with a job change.

But a lender can look at more info than just the score. Employment history will be reported with the reports, and its up to the lender to decide if changes in job history warrant less favorable terms.

I'm not an expert here, but it would seem to be a completely human interpretation by the mortgage broker. If, for ex, I get a substantial raise and a higher position at a new place of work in the same town, it would seem like that shouldn't ding me too much, right? Yes, there's some uncertainty when taking a new job, but I'm guessing a reasonable lender wouldn't punish me (assume my credit is worse) for making 20K extra a year. As long as the lender can document that your previous experience qualifies you for the new position, you are golden.

If you are moving laterally... not gaining in income and just bouncing around... I think its reasonable for a lender to wonder about whether the income is stable enough to lend, though even this isn't supposed to be awful.

My understanding is that the biggest problem with changing jobs and getting a mortgage isn't that the job is changed... its when you get into a completely new profession or area of work. So mailguy to quality control manager... jump up, but the lender might wonder about your chances for success in the new job.

Don't mean to be nit-picky about wording. Just think the lenders interpretation is all that changes, not the true credit score.

I have yet to see a credit score affected by employment. If you are moving from one job to another in the same field, for more money you should have no problem. The main thing is to be upfront with your loan officer. If you start the new job in the middle of processing the mortgage, the lender will want to see at least one paystub to verify the new income PRIOR to the closing. Other than that, you should be fine.

Quote:

---

Originally Posted by DianeV Sr Loan Officer

I have yet to see a credit score affected by employment. If you are moving from one job to another in the same field, for more money you should have no problem. The main thing is to be upfront with your loan officer. If you start the new job in the middle of processing the mortgage, the lender will want to see at least one paystub to verify the new income PRIOR to the closing. Other than that, you should be fine.

---

I had wondered about that. I've seen my own credit report/score and I've never noticed even a clue about any of my job changes. So, thanks for verifying. :)