Rebecca Richardson - Mortgage Consultant
Use These Tips to Buy in the Midst of Major Life Events
Let’s face it – life happens.
And maybe it’s Murphy’s Law, but it may seem like big life events happen in tandem. New jobs, side gigs, moving to a new city. These are just a few of life’s curveballs that also may mean you are in the market for a new home. But just how do these changes impact your ability to qualify for and purchase a home? Unsure? You may want to check in with your friendly mortgage professional.
How to buy with a new job
Are you scared a new job will stop you from buying a home?
Lots of people believe you have to have the same job for two years, but I’ll show you how you can have a new job AND a new home.
Although it’s different if you get commission income or are self-employed, if you are paid a salary or have guaranteed income, you don’t need two years at the same job.
And in some cases, you can even buy before you start that new gig.
There are a few personal and financial milestones you would have to document, which is why starting the process well in advance of house hunting is important.
How to buy with a side hustle
Around 59 million American workers participate in the gig economy – that’s more than 1 in every 3 workers. So, odds are pretty good that maybe you started a side hustle in the last few years as well. And many of those people are in the market for a new home.
If you are one of those, you’ll want to know these two things so you have an easier time.
The first thing people want to know is can the money they earn from a side hustle be used for the down payment and closing costs.
Most of the time? Yes!
2. The second thing my clients ask is how long do they need the income before it can be used to qualify?
For most buyers and for most loan types you’ll need two years of this income and tax returns will be needed to verify what income can be used.
Did you start a side hustle so you can buy a home? My team and I have helped hundreds of gig workers qualify for and buy their dream home.
How to buy when you’re moving to a new city
From the Great Resignation to the Great Migration people are taking advantage of the opportunity to quit jobs and find a better one. Even if that means moving. In fact, from the start of the pandemic to the middle of last year, the United States Postal Service estimated about 16 million people moved, either temporarily or on a permanent basis.
But does this hit the reset on your home buying timeline?
If you use bonus, commission, overtime or self-employed income to have your loan approved, it may have an impact.
If you are salaried or have guaranteed hours, you’re usually fine to qualify right away.
And in some cases, you may even be able to buy before you start that new job. To learn the ins and outs of buying a home when you are moving across the country, your state or just across town, working with a trusted mortgage professional can help you with pretty much anything you’ll need – except maybe packing the boxes.