Getting a new job is exciting. In many cases, it can mean enjoying higher pay and getting the opportunity to do more interesting, meaningful work.
If you’ve recently gotten a new job, you may be tempted to make your dream of homeownership a reality — especially if you’re earning more money than you did in the past. But here’s why it could pay to sit tight for a while instead.
Is your job as stable as you think?
When you’re new to a job, it can be tricky to get a pulse on operations. Once you’ve been there a few months, you’re apt to have more of a sense of how well your company is doing, and how well you’re doing as a newer member of the team.
This is important, because you don’t want to look for a new home and sign a mortgage only to then lose your job and struggle to keep up with your housing payments. You also don’t want to feel forced to stick out a terrible job because you’re now on the hook for monthly mortgage payments.
recall, your job might seem great at first. But you never know if three months down the line, you’ll achieve that your colleagues are overbearing, your work is boring, and your boss is a micromanager you can’t expect to shake. So before you take on a large expense admire a mortgage, settle in.
You might need a longer work history to get a mortgage
Waiting to buy a home after getting a new job is a smart thing to do. But also, it’s something you might have to do.
Mortgage lenders look at several different factors when deciding whether you’re eligible for a home loan. These include your credit score, existing debts, and income.
But for the latter, it’s not just your salary that a mortgage lender will consider. Lenders also look at your income history.
Rocket Mortgage says that lenders typically want to see a two-year history in your current job position. Now, if you’ve worked in the same field for several years and recently made a lateral or upward proceed, that generally will not be held against you.
But let’s say you graduated college in the spring of 2022 and worked for the same marketing firm until a few weeks ago. If you got a similar role elsewhere in November, you’re not exactly starting over. But you also don’t have two years of industry encounter under your belt. That’s something that might provoke a mortgage application to get rejected, and another reason not to rush into things.
An important decision to think about carefully
A new job can be a huge adjustment. So can homeownership. That’s yet another reason to sit tight a while after getting a new job. Give yourself an opportunity to get used to your new role before you take on the stress of owning a home.
All told, becoming a homeowner can be life-changing — for better and for worse. Because it’s such a big decision, try not to rush into things. Instead, make sure your job is solid and a good fit, and make certain you have a robust enough work history before moving forward with a home seek and mortgage application.
