You just started a new job, or you’re about to. Maybe it’s a better role at a new company. Maybe you took some time off between jobs, or you’re moving into a different kind of work altogether. And now you want to buy a home or refinance.
It’s natural to worry that a lender will see a short time at your new employer and say no. Often, that worry is bigger than the actual issue. What matters most is the kind of change you made, not just how recently you made it.
For the big picture on qualifying when your income doesn’t fit the usual box, see Self-Employed Mortgage Options.
What lenders actually look at
For conventional loans, Fannie Mae’s Selling Guide asks lenders to look for a reliable pattern of employment over the most recent two years. That’s a pattern, not two years with one employer. The guide also says that borrowers who change jobs often, but still earn consistent and predictable income, can be considered to have a reliable flow of income.
Other loan types and individual lenders apply their own rules, so the details can differ. But the core idea is consistent: lenders want to see that your income is stable and likely to continue.
Changes that are usually simpler
Same line of work, same or better pay. Moving to a new employer in the same field, on a salary or steady hourly pay, is often one of the easiest changes to document. Your history in that line of work usually still counts.
A signed offer for a job that hasn’t started. In some situations, a lender can work with a fully signed, non-contingent offer letter. Fannie Mae allows this under specific conditions, including documentation of the position, pay, and start date. Not every lender or loan type offers it, so it’s worth asking early.
Changes that usually need more history or explanation
Moving to commission, bonus-heavy, or variable pay. When a big part of your income changes from fixed to variable, lenders typically want a history of receiving it before they average it in. Fannie Mae generally recommends a two-year history of commission income and may accept a shorter history, though not less than a year, when other strengths in the file offset it.
Changing fields. Moving into a different kind of work can raise more questions than a move within the same field. Some lenders want more time in the new role, or other strengths in the file that support it.
Going self-employed or 1099. This changes how your income is documented entirely. See thinking about switching from W-2 to 1099? Plan the mortgage first, or, if you’ve already made the move, Can I Get a Mortgage After Switching From W-2 to 1099?
A recent gap in work. Fannie Mae notes that gaps in the most recent year may make employment look unstable, and asks lenders to look carefully at whether current employment is likely to continue. A clear explanation, like caring for a family member, school, or a layoff followed by steady new work, often helps.
What to have ready
- Your offer letter or employment agreement, showing your position, pay structure, and start date
- Recent pay stubs from the new job, once you have them
- W-2s from prior employers
- A short, honest explanation of any gap or change in career
- For commission or variable pay, a record of what you’ve earned so far
How one buyer handled a career move
David spent years in one industry, then took a new role in a related field with a different pay structure: a smaller base salary plus commission. He and his partner had found a neighborhood they loved and wanted to start shopping.
Before they made an offer, David booked a strategy call. We looked at which parts of his income were likely to count right away and which would need more history. His base salary was straightforward. The commission side would take time to establish.
With that clear, David and his partner chose to shop in a range supported by the income that counted now, and to plan a later refinance or move once his commission had a track record. They found a path that let them buy without stretching, and they knew exactly why their numbers looked the way they did.
Illustrative composite based on the kinds of situations we see. Not a guarantee or commitment to lend. Every file is different.
A simple plan
- Book a strategy call. Tell us about your job change, your pay structure, and your home plans.
- We review your work history up front. So you know what counts now and what needs time.
- We map out the path. The right loan type, the right timing, and a clear list of documents.
If you’re buying, our smarter home buying plan explains why the loan strategy should come before the house hunt.
A new job doesn’t have to mean waiting
If you’ve recently changed jobs or had a gap in work and you’re wondering where that leaves you, I’m happy to take a look. No pressure, just a clear answer.
Mike Pacheco
President, Qualified Home Loans
Qualified Home Loans, NMLS 884457 · CA DRE 01910455 · Mike Pacheco, NMLS 236302 · Equal Housing Opportunity · Subject to qualification.