Mortgage Myth #21: A Recent Job Change Disqualifies You
Changing jobs doesn’t have to mean hitting pause on homeownership.
The Myth
“You’ve changed jobs recently, so you can’t qualify for a mortgage.”
The Truth
Not all job changes are the same — and many don’t disqualify you at all. In fact, a promotion, a move within the same industry, or a job offering higher guaranteed income can often strengthen your mortgage application.
Why People Believe This
Lenders look at employment history to assess income stability. That’s why people assume that any recent change resets the clock. They hear stories of loans denied due to employment shifts and assume it applies across the board.
Detailed Breakdown
Here’s what lenders actually care about:
- Same Field, Same Strength – If you move from one employer to another in the same line of work, your income is often considered continuous.
- Promotions & Pay Raises – A step up with better pay or benefits? That’s a positive, not a negative.
- Job Type Matters – Hourly jobs with fluctuating hours may need more review, but salaried roles are straightforward.
- Self-Employed / 1099 – Moving from W2 to 1099 is trickier; lenders typically need 1–2 years of tax returns for self-employment income, but there are even ways around this!
- New Grads – A recent diploma plus an offer letter in your field can count as a “work history.”
Real-World Example
A client of ours left his long-time employer for a higher-paying role at a competing firm. He was told by friends, “You’ll have to wait two years before you can buy.” The truth? We closed on his new home within 60 days of his promotion.
On the other hand, we’ve seen buyers move from W2 to full-time self-employed. That path requires patience — but with planning, they can buy once they have the required income history...and it's often not as long as one might think. Reach out if this is you.
The Bottom Line
A job change does not automatically mean you’re disqualified. The type of change, the income structure, and how it’s documented are what matter.
Your Turn
Have you or someone you know held back from buying because of this myth? If so, share this post with them. If that's you, and you'd like to talk, let's connect.
