Landing a new job is an exciting milestone for your clients, often bringing the prospect of purchasing their dream home within reach. However, for new employees eager to transition from renting to homeownership, the process can come with unique challenges. As a real estate agent, you play a crucial role in helping clients navigate these obstacles.
Here are key insights to share with your clients about buying a home after starting a new job.
Employment Stability Is Key
Mortgage lenders typically look for job stability when evaluating loan applications. While switching to a higher-paying or more stable job can strengthen a client’s financial profile, most lenders prefer borrowers to have at least two years of steady employment in the same field.
If your client has recently started a new position, reassure them that lenders may accept less time if their new role aligns with their previous work experience or education. Encourage them to keep detailed records, such as offer letters, employment contracts, and pay stubs, to demonstrate stability.
Time Your Application Wisely
For clients transitioning to a new job, timing is everything. Many lenders require borrowers to complete their probationary period or have at least 30 days of pay stubs before approving a loan.
Let your clients know that even if they’re excited to start the homebuying process immediately, it might be worth waiting a few months to strengthen their application. Explain that showing a few consistent paychecks can help smooth the underwriting process.
Prepare for Extra Scrutiny
When clients have just started a new job, lenders are likely to scrutinize their finances more closely. This can include verifying the terms of employment, salary, and whether the job is full-time or part-time.
Encourage your clients to avoid making any significant financial changes, like opening new credit accounts or making large purchases, as these could raise red flags during underwriting.
Highlight Career Advancement
Clients often worry that a recent job change will hurt their chances of getting a mortgage. Reassure them that many lenders view career advancement favorably—especially if the new job comes with a higher salary or more stability.
Remind your clients to provide clear documentation showing how their new role aligns with their career trajectory, as this can help lenders see the change as a positive factor.
Understand the Impact of Relocation
For clients who’ve relocated for a new job, their transition might add layers of complexity to the homebuying process. They’ll need to establish residency and update all important documents including their identification, bank statements and credit accounts with their new address.
Additionally, relocating can come with unexpected costs, such as temporary housing or moving expenses, which may affect their down payment savings. Advise your clients to plan for these expenses and communicate them to their lender.
Encourage Preapproval Early
Even with a new job, clients can still start preparing for the homebuying journey by securing mortgage preapproval. This step helps them understand their budget and strengthens their offer when competing for homes.
Let your clients know that preapproval doesn’t lock them into an immediate purchase—it simply sets the stage for a smoother transaction when they’re ready to buy.
Self-Employed or Commission-Based? Proceed with Care
Clients transitioning to self-employment or commission-based work face unique challenges in qualifying for a mortgage. Lenders often require two years of tax returns to verify income for self-employed borrowers.
If your client is just starting out, advise them to consult a mortgage professional early to explore options such as bank statement loans or other alternative programs tailored to their situation.
Help Them Keep Long-Term Goals in Focus
A new job might tempt clients to stretch their budget for a dream home, but remind them to prioritize long-term financial health. Share budgeting tips and emphasize the importance of leaving room for savings, retirement, and unexpected expenses. By helping clients focus on homes within their means, you can ensure their new job and new home are sources of stability, not stress.
Partner with Trusted Mortgage Professionals
One of the best ways to support clients navigating homebuying after landing a new job is to connect them with trusted mortgage professionals. These experts can guide your clients through underwriting nuances, explore special loan programs, and offer solutions tailored to their unique circumstances. Strong partnerships between agents and lenders make for smoother transactions and happier clients.
Reassure Them: It’s Possible!
Finally, remind your clients that buying a home after starting a new job is not only possible—it’s a common scenario. By following the right steps and working with experienced professionals, they can achieve their homeownership goals. As their agent, your support, expertise, and connections make all the difference.
For your clients, buying a home after landing a new job can be both exciting and overwhelming. By proactively addressing their concerns and equipping them with the right strategies, you’ll help them feel confident every step of the way. After all, your ability to guide clients through life’s transitions—whether it’s a new job, a growing family, or a change of location—solidifies your reputation as a trusted partner in their homebuying journey.
