Mortgage Question

Ohoopee

Hello, I have a question. I finally have enough savings to make a down payment on my first ever home. I Have been working with my current company for three years now. However, I have recently been offered a Job making 8 thousand euro per year more than I am currently making. My question is, am I better off applying for a mortgage now, prior to quieting my current job so I will have a long work history but wont be making as much income…or should I wait to get the new job so I won't have a long work history but make a higher yearly income? Which one will make it easier for me to get a mortgage?

Q&A

If you really want to change jobs and aren't closing on a house in the short term you will likely have to wait.

It's unlikely a lender will give you a mortgage if you've only just started a new job. They'll be concerned that you might not pass the probation period.

Something to bear in mind, is lenders may look for updated bank statements and pay slips before drawdown. It'll be obvious you've changed employer and they may take a dim view of this and pull the plug on a mortgage.

Jim2007

It does not really work like that… You are dealing with professional lenders who are well used to lending people large sums of money so it is not a once off assessment and there will be provisions requiring you to update them on your circumstances in the contract you sign plus details of the sanctions that can be imposed should you fail to comply, with the ultimate sanction being that the loan crystallises - meaning it becomes payable on demand and a possible criminal complaint, although I'm only aware of one case where the bank followed through on that.

Since you are not in the process of purchasing a property, the most likely outcome you could achieve at present is some kind of agreement in principle from a bank to give you a mortgage at a later date. And at that time they would require an update on your circumstances. So I don't see any point to doing it, if you really want to change jobs.

In any case it has been my experience that most people don't actually have enough money saved when the go to make their first house purchase as there are a lot of extra expenses they fail to take into account, so adding a couple of extra years savings to your pot is not bad move.

herbalplants

Buying the house it will be a lengthy process like looking at homes, bidding and failing to win the highest bid. So it is best to change job if you feel it is rock solid and apply after then.

Ohoopee

Thanks, this will be my first home and I am in my forties and just don't really have any idea. I'm single and my biggest obstacle at the moment is how much the bank will lend me on a single income and the price of houses in my area. I thought having 8 thousand more per year might help me out in this regard but if I won't be able to buy because of starting a new job then that is out.

Jim2007

https://www.boards.ie/discussion/comment/122050745#Comment_122050745

The most important obstacle you should be putting in you way right not is the one that ensures you will not over stretching yourself financial in trying to achieve this objective.