Expert: Jessica Bryan - 2/6/2008

Question
Hi Jessica, how are you? My name is Paul. I just have a really quick question regarding a loan my wife and I were just pre-approved for. We plan to buy our own house by summer at the latest. I have been in the process of looking for a new job for many reasons. I am very unhappy at my work, travel over an hour to get there, etc. My wife just mentioned to me yesterday that I should stop looking and just "stick it out" for a few more months until we've bought our home. She says because I have been at my job for almost 4 years, it was the main reason why we got the loan we did, etc (She's only been at her job for 6 months). Will it affect anything if I were to change jobs in our process?? I mean, should I continue to be completely unhappy with where I am right now just to get the house buying process over with? I have nothing but good references everywhere I've worked. Please help! I appreciate it. Thank you very much!

Answer
Dear Paul;
I am sorry to say this: you need to stay put until you buy the house.  With lenders being so much more scrutinizing these days, it is entirely possible that a change of jobs will be the one thing that keeps you from getting a loan.  Why risk it?  Lenders are looking for borrowers who are 'stable' and a good risk.  If you change jobs, the underwriters will view this as a possible problem since with new jobs the employee is viewed as 'maybe not going to work out in his new position.' Or, if there are lay-offs, the newest employee is often the one to go first. My suggestion is to buy a house as soon as possible since the interest rates are down right now and the market prices are also low. (I don't know how long that will last!) There is considerable inventory on the market in all regions of the country and by the time you get started looking until you buy, you will be seeing more homes being listed for the Spring market. The Spring market will provide an excellent amount of homes from which to choose.

Being completely unhappy with your current job is unfortunate but perhaps the distraction of buying a home will help you.  You can also take some time to look for the best job possible and by the time you move in to your new home you will be ready to change jobs as well.

Good luck and best wishes,
Jessica Bryan