Ever since COVID locked us down, many of us have looked to reinvent our relationship to our “work.” Remote gigs, side hustles, multi-state territories, and a strong Wi-Fi connection have changed how we “show up to the office” and how we structure our careers. So, what if you are in the midst of change and want to buy a new home, or even simply refinance the debt you already own?
Mortgage guidelines and terms are based on risk. How likely is this set of characteristics (a k a your life) to repay debt without default? Does the income look to be stable, continuous? Is it too new to rate, or can the level of cash flow needed to meet the monthly mortgage obligation be supported?
Good news: If you are getting a new job, it’s in the same line of work, AND you start on or before the first payment of your new home loan, you should be fine! Bad news: If there’s big changes in the structure of your pay (say, going from salary to all commission) or you have a big gap in employment between Job A and Job B, then expect more hurdles ahead.