We are in the midst of what experts are dubbing The Great Resignation, with people leaving their jobs in record numbers.
But what if you are considering buying a home in the near future? Is joining The Great Resignation the right move for you, or is it better to wait until after you have purchased a home to make a major career move?
A recent article from realtor.com outlined factors potential buyers should consider if they are considering changing jobs before or during their home search, including:
Timing. Generally, switching jobs during the mortgage application process will cause more issues than changing jobs before you apply for a mortgage. So, if you are thinking about switching jobs, try to make the change well before you buy a home. (The longer you are in your new job before you apply for a mortgage, the better!)
The type of job change. The type of career switch you make can also impact your ability to get a loan. For example, keeping the same job title and switching to a new company is generally looked at as less risky than changing careers altogether. If you are thinking about making a complete career change (for example, transitioning from software engineering to teaching), you may want to consider waiting until after you have purchased a home.
The financial impact. Another way changing jobs can impact your ability to buy a home is income. If your income or income structure is going to change (for example, if your new job pays less money, or you are going to be switching from a salary to a commission structure), it could impact your buying power and/or make it harder to get approved for a mortgage.
Changing jobs right before or during a home search can complicate your ability to secure a mortgage—so before you jump into a new job, company, or career, consider how it might impact your home search.