Lenders and Job Change (Austin: mortgage broker, loan, brokers)

[wylkell]

So my situation turned complicated this week. I'm in the process of closing on my current house (at the end of next month) and i've found a new house i'd like to put an offer on and am starting that process as well. It's a FNMA REO property so it has that closing costs incentive on it till May 1st. So i'm thinking i can close on both at the end of April and make it all work out.

Now the complicated part, i work for a large telecommunications company as a contractor. They've been trying for a few years to get the paperwork through for approval to convert me to a full time employee and right in the middle of this house madness, the paperwork somehow goes through and my boss surprises me with a "Congradulations, we are finally hiring you. This month."

Obviously i cant turn down something i've been working towards for a few years but the timing couldn't have been worse. My limited understanding of lenders and mortgages is one of the worst things you can do is change a job in the middle of the process. How ugly can this get? Is converting from a contractor (technically a W2 employee of a contract company) to a salary employee (with who is technically the customer) considered a job change by lenders? And if so, does this mean i'm not likely to be able to move on and close a house purchase in the span of a month?

It also doesn't help that the pay is less on the face of it with the full position, but about equal when you include the benefits and bonuses, though i dont think a lender will care about those and will only see the big numbers, which sucks considering my job is about to become more stable (better for them). Thoughts?

[RevMen]

Since you haven't made an offer, I assume you haven't applied for a loan, and have a pre-approval. I'd suggest getting a new pre-approval before submitting an offer. For something like this it'd be good to have a mortgage broker.

[bgrn198]

Originally Posted by wylkell

So my situation turned complicated this week. I'm in the process of closing on my current house (at the end of next month) and i've found a new house i'd like to put an offer on and am starting that process as well. It's a FNMA REO property so it has that closing costs incentive on it till May 1st. So i'm thinking i can close on both at the end of April and make it all work out.

Now the complicated part, i work for a large telecommunications company as a contractor. They've been trying for a few years to get the paperwork through for approval to convert me to a full time employee and right in the middle of this house madness, the paperwork somehow goes through and my boss surprises me with a "Congradulations, we are finally hiring you. This month."

Obviously i cant turn down something i've been working towards for a few years but the timing couldn't have been worse. My limited understanding of lenders and mortgages is one of the worst things you can do is change a job in the middle of the process. How ugly can this get? Is converting from a contractor (technically a W2 employee of a contract company) to a salary employee (with who is technically the customer) considered a job change by lenders? And if so, does this mean i'm not likely to be able to move on and close a house purchase in the span of a month?

It also doesn't help that the pay is less on the face of it with the full position, but about equal when you include the benefits and bonuses, though i dont think a lender will care about those and will only see the big numbers, which sucks considering my job is about to become more stable (better for them). Thoughts?

Just out of curiosity which Telecommunications company are you working for?

[zach5150]

Your best bet is to start shopping mortgage brokers and state your scenario to see what they say. I'm not a broker, so I'm not 100% sure,but I think it may not be as ugly as you think. Mortgage companies will take your situation into consideration. A big plus is that you are still in the same industry with a similar job description. I think you should just check w/ a couple of lenders.

[AGA]

I agree with previous poster. Actually when we moved to Austin, neither of us had jobs but we had a pre-approval letter based on the jobs we were leaving (I guess assuming same industry/same pay scenerio) and there were no issues.
Check with a REPUTABLE mortgage company perhaps suggested by your agent if you have one, and get the low down. I think it should all work out. You may just need to get a letter from HR stating the comparable pay scale...

And, I too am curious about your telecom company...

[centralaustinite]

Most banks like salaried workers better than contractors, especially 1099 ones.

You might be in a stronger position now than before, start calling and asking.

[Southern Phoenician]

What matters is that you are in the same line of work. We've changed jobs and bought houses with no problems at all. Just talk to your mortgage lender. Congrats!!!!