Job Change While In Contract? Keep Current Job If At All Possible

According to a Forbes article, the average millennial will have between 15 to 20 jobs during their career, with most expecting to hold a particular job for three years or less. Gone are the days of the 40 year career and the gold-watch retirement.

This is particularly the case in the Bay Area, where the job market is more dynamic than anywhere. We are feeling it at JVM b/c we have had several borrowers switch jobs recently while they were in contract to buy a home.

These borrowers sprung the news upon us with no forewarning. The result of such news is usually a delayed closing b/c we often have to wait for the borrower to accrue 30 days of pay before we can close. Sometimes, new jobs prevent borrowers from closing at all if the new job is “100% commission” that requires “history” before we can use the income.

The best solution for borrowers planning to switch jobs is to not let us know or their current employer know until after close of escrow. Current employers need to be kept in the dark b/c the lender will perform a “verification of employment” prior to funding, so we need to make sure employers do not say the borrower is planning to leave the company. Even if the employee is gainfully employed at funding, we cannot use the income if the employee is planning to leave the company.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646