I just got a call from a headhunter, he’s got a job for me that is almost double what I make now. Now, while I know doubling my income will certainly help when I apply for loans how will it look when I am applying just months after taking a new job? I have 2 jobs at this point, one full time (been there for 3.5 yrs) and one part time (been there 2 yrs). This of course looks good because I am steady in my jobs. However the new job will bring me about $15,000/yr more at 40 hrs a week rather than 65 hrs a week that I have now (not to mention nearly 2 hrs a day less commuting). I know it would be foolish to pass it up but how will it affect my ability to procure a loan?
The fact that you are moving to a new residence possibly in a new state will have absolutely no negative impact on your ability to obtain a mortgage. Especially since you are going to be better compensated.
Some lenders may want to be sure you are going to have employment available to you upon moving and may want to verify such employment. Mortgage lenders typically want to see 2 full years of continuous employment (two year look back).
You do not have to be employed at the same place for all of those two years.
Just be sure that you are actually going to get what the headhunter is promising you…remember…he is a salesman compensated by your placement so make sure you factor that into the equation.
Best of luck to you.
Regards,
Mike G
Senior Mortgage Consultant
Weatherstone Mortgage
It would be the same state, in fact closer than my current job. There would be no concern about moving and not having a job where I go, I would be staying in the same area and either taking or leaving the job offered. I’m looking to buy a peice of property in the next 6 months, if this job happens it will be in the next month so I would be applying for a new loan about 4-5 months after starting the new job. I am 25 now and have been continuously employed since I was 16, most of the time with 2 jobs. There is probably a period of less than 2 years all combined when I only had 1 job (never have been unemployed).
Even better that you are staying local to where you are now.
and As I said earlier there is only a two year look back as far as your employment is concerned.
As long as your credit is in good shape mid 600 to 700 range you will be in great shape as far as getting a mortgage.
My advice to you would be deffer any big ticket purchases (new car etc.) and do not incur any more credit card debt or open any new credit card accounts. Of course this all assumes that you currently have established credit in good standing…if so…place yourself under what I call Financial Lock down…NO NEW DEBT. And whatever you do do not close credit card accounts in good standing. You must be able to show a mortgage lender that you act financially responsible with the credit extended to you and you do that by paying your debt down and on time.
Best of luck to you.
Regards,
Mike G
Senior Mortgage Consultant
Weatherstone Mortgage
Current situation is FICO of around 670 or so, too many credit lines at or near limit. No lates on any credit lines, just one 60 day late on a gas bill a year ago (forgot to pay it for a while). All credit lines paid on time. Going to use my tax returns to pay down my debts significantly (should be able to take around half of my unsecured debt off the top with the tax returns). Should be a lot better off creditwise in a few months. In the meantime I’ve been making double and triple payments on many of my credit lines as well as not adding any additional purchases. I’ve also used a credit counselor to get my interest rates reduced drastically, in most cases percentages in the 20’s to below 10%.
I am not giving advice on this…I have no idea whatsoever on what affect this would have…either positive or negative…on your ability to get loans.
I can only speak for myself about the jobs. I would take the new job in a heartbeat if it is what you really want, irregardless of the loan stuff. But that’s just me.
Good luck whichever way you go.
Typically lenders will look at length of time on the job, then number of years in the profession. Sales is sales, whether it’s vacuum cleaners, real estate or water pumps;
demonstrating time in the industry is the key.
Dave
If your credit is in the 670 to 700 range you are good to go.
For the future I recommend that you never go over 50 percent of what an available credit line is. If a bank gives you a credit card for $2,000.00 do not go over $1,000 on that card especially if you are going to carry the balance. Once you max out Credit Cards Your scores can drop significantly.
Feel free to call anytime with questions!
Regards,
Mike G
Senior Mortgage Consultant
Weatherstone Mortgage
Yeah, definitely don’t want to be in that position again. While I was in school and getting out on my own I relied on credit cards to get me through tough times, now that money is a little better I am getting my finances in order. Always made the payments though, even during the bad times. Only mistake I made was running the balances up to the top. Also, I made the mistake of closing out some cards I paid off a few years ago before I found this site. My thought was that open super high interest cards with no balances would hurt me, little did I know leaving them open would actually help. I figured killing them and getting cards with around the same limit and lower interest rates would be my best move.
It sounds as though your credit is good enough for lower interest credit cards that you could roll the debt into. None of my credit card debt is over 3% fixed. I took advantage of some very attractive balance transfer offers and 3% fixed is tough to beat. I am of the school of thought that it is essential to preserve as much of your liquid cash as possible and float the rest with other peoples money (low interest credit extensions)
One must be very careful though in being sure they do not get in over their heads. Credit can be a very effective means to an end if used wisely.
Whatever you do do not enter into Debt Counseling to consolidate and pay down your unsecured revolving debt. Most mortgage lenders view it as on par with a Bankruptcy.
Kindest Regards,
Mike G
Senior Mortgage Consultant
Weatherstone Mortgage
Rich, I was in a similar situation. Except, I was layed off of one job (out of work for 10 months) and into another job that pays 2/3rds of what I used to make but in the same line of work. That was the key (same line of work) when
the bank ok’d me for a loan. Hoping to close on my first investment property in about 7-10 days now. Woohoo.