TRY EASY MLS SEARCH ©          HOME          CLUB MEMBERSHIPS          VIRTUAL TOURS          NEWSLETTER          ABOUT ME          CONTACT ME

Pinehurst Real Estate
Dale Heck
Sandhills Luxury Homes
910-528-4652

gopinehurst@gmail.com
WELCOME
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
Pinehurst Real Estate
HOME BUYERS
Pinehurst Real Estate
Buyer Closing Costs
Pinehurst Real Estate
Mortgage Approval
Pinehurst Real Estate
Mortgage Calculators
HOME SELLERS
Pinehurst Real Estate
Seller Closing Costs
Pinehurst Real Estate
Home Selling Advice
RELOCATION REAL ESTATE AGENTS
Pinehurst Real Estate
Atlanta Real Estate
Pinehurst Real Estate
Naples Condos
 



The Effect of Changing Jobs


How Changing Jobs Affects Buying a Home

For most people, changing employers will not really affect your ability to qualify for a mortgage loan. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.

Salaried Employees

If you are a salaried employee who does not earn additional income from commissions, bonuses, or over-time, switching employers should not create a problem. Just make sure to remain in the same line of work.  Hopefully, you will be earning a higher salary, which will help you better qualify for a mortgage. Call Dale for condo on the Pinehurst golf course.

Hourly Employees

If your income is based on hourly wages and you work a straight forty hours a week without over-time, changing jobs should not create any problems.

Commissioned Employees

If a substantial portion of your income is derived from commissions, you should not change jobs before buying a home. This has to do with how mortgage lenders calculate your income. They average your commissions over the last two years.

Changing employers creates an uncertainty about your future earnings from commissions. There is no track record from which to produce an average. Even if you are selling the same type of product with essentially the same commission structure, the underwriter cannot be certain that past earnings will accurately reflect future earnings. Call Dale for condos on Pinehurst golf course.

Changing jobs would negatively impact your ability to buy a home.

Bonuses

If a substantial portion of your income on the new job will come from bonuses, you may want to consider delaying an employment change. Mortgage lenders will rarely consider future bonuses as income unless you have been on the same job for two years and have a track record of receiving those bonuses. Then they will average your bonuses over the last two years in calculating your income. Call Dale or Cathy for property on Lake Pinehurst.

Changing employers means that you do not have the two-year track record necessary to count bonuses as income.

Part-Time Employees

If you earn an hourly income but rarely work forty hours a week, you should not change jobs. There would be no way to tell how many hours you will work each week on the new job, so no way to accurately calculate your income. If you remain on the old job, the lender can just average your earnings.

Over-Time

Since all employers award overtime hours differently, your overtime income cannot be determined if you change jobs. If you stay on your present job, your lender will give you credit for overtime income. They will determine your overtime earnings over the last two years, then calculate a monthly average.

Self-Employment

If you are considering a change to self-employment before buying a new home, donít do it. Buy the home first.

Lenders like to see a two-year track record of self-employment income when approving a loan. Plus, self-employed individuals tend to include a lot of expenses on the Schedule C of their tax returns, especially in the early years of self-employment. While this minimizes your tax obligation to the IRS, it also minimizes your income to qualify for a home loan. Call Dale or Cathy for Pinewild Real Estate.

If you are considering changing your business from a sole proprietorship to a partnership or corporation, you should also delay that until you purchase your new home.

 

This site was developed to provide information on Pinehurst real estate including Pinehurst Golf
and Waterfront homes, Pinehurst condos, and Pinehurst and Southern Pines Commercial real estate. 
 

Please visit our other area Real Estate websites:

Pinehurst Homes For Sale  |  NC Horse Farms  |  Pinehurst Homes  |  Pinehurst NC Real Estate  |  Fort Bragg Real Estate  |  Pinehurst Real Estate




Best Services in Pinehurst

Pinehurst Real Estate

Go with a Pro

Pinehurst Real Estate
Buy a Golf Home From a golfer that knows the ins and outs of all of the golf communities.

Community Profiles

Pinehurst Real Estate


Pinehurst NC Sites