Changing Jobs During the Mortgage Process: What You Need to Know
/Norah Tanner, part of the Houzd Mortgage Team, is back to explain how changing jobs during the mortgage process could affect your ability to close on a loan. Let’s take a look.
Life moves fast—sometimes faster than your mortgage approval. It’s not uncommon for homebuyers to consider or accept a new job offer while they’re in the middle of buying a home. But if you’re in the process of applying for a mortgage (or already under contract), changing jobs can complicate your loan approval.
That doesn’t mean it’s impossible—but it does mean you need to understand the impact and communicate clearly with your lender.
Here’s what you need to know about job changes during the mortgage process—and how to handle them if they come up.
Why Lenders Care About Your Employment
Your mortgage approval is based largely on your income stability and ability to repay the loan. Lenders verify your employment and income upfront—and again just before closing—to make sure nothing has changed.
If you switch jobs during the process, the lender has to recalculate risk and determine if the new position meets their income guidelines. This is especially important if your new role changes:
Your income type (salary vs. commission or hourly)
Your hours worked or job status (full-time vs. part-time or contract)
Your field or industry (a major career change can be a red flag)
What Happens If You Change Jobs Mid-Mortgage?
Here’s how a job change might affect your mortgage, depending on the situation:
1. Same Industry, Better Pay, W2 Income
This is often manageable. If you move to a similar position in the same field with a higher salary and stay on W2 income (not self-employed or commission-based), lenders are generally supportive. You’ll need to provide:
A new job offer letter or contract
Updated pay stubs (once available)
Verification from the new employer
This could delay your loan closing slightly, but it usually won’t derail it.
2. Switching from Salary to Commission or Self-Employment
This is a bigger concern. Lenders typically require a two-year history of commission or self-employment income. Even if your earnings increase, you may not be able to use that income to qualify—at least not right away.
This type of change can jeopardize your loan approval, especially if it happens before your loan closes.
3. Gaps in Employment
If your new job starts several weeks after you leave your current job, the lender may see a gap in employment. This could trigger additional documentation requirements or concerns about income continuity.
When Is the Best Time to Make a Job Change?
If possible, wait until after closing to change jobs. Once the loan is funded and the transaction is complete, you can switch roles without affecting your mortgage.
If you must change jobs during the process (for personal, financial, or relocation reasons), tell your lender immediately so they can help guide you. The earlier they know, the better they can adapt your loan file and avoid surprises during final underwriting.
Tips for Handling a Job Change During the Mortgage Process
Be upfront with your loan officer — Don’t try to “time” the change without telling them.
Avoid commission or contract roles unless you have a solid history of that income type.
Get your job offer in writing and include all compensation details.
Document everything — pay stubs, offer letters, contact info for employment verification.
Expect delays, especially if the lender needs to reverify your file or reapprove the loan.
Final Thoughts
Changing jobs during the mortgage process isn’t necessarily a deal-breaker, but it does require careful handling. If you're planning—or even just considering—a career move while buying a home, talk to your lender as early as possible. They can help you understand what’s acceptable, what’s risky, and how to protect your home loan approval.
Remember: stability is key during the mortgage process. Try to keep your financial picture as consistent as possible until the deal is done.