A number of factors determine your eligibility for a mortgage in Phoenix. A bigger down payment and a low debt, for instance, can make you an attractive borrower, as both factors signify financial discipline. A low credit score, meanwhile, may still help you score a loan but pay a higher interest rate. This makes it more important to repair your credit first before applying for a mortgage.
Another important factor is a stable and a good income, as lenders may not offer you a loan if your income is not high enough. You may ask them how much money you need to get the loan you want, then you can find a new job in your current line of work to earn the income needed.
Mortgage companies share why a higher-paying and steady income is important.
Changing Jobs and Getting a Loan
If you’ll change jobs to earn more, be sure to stay in the same line of work. This is because lenders value a steady employment history so much. Switching professions may entirely affect your chances of getting a loan. The good news is, changing jobs doesn’t completely rule you out for a mortgage. You just have to be upfront with the lender and be prepared to do the necessary paperwork.
Improve Your Marketability
If you, however, think that applying to another company will not significantly raise your income, you can try other things to increase your professional value. You can continue an education program or take a training/course to achieve your career goals. You can talk to a career counselor for some guidance in boosting your marketability without starting all over.
The Case for a Part-Time Job
Getting an extra job may boost your cash flow, but this may not qualify as income for lenders. This is because are freelance jobs are more considered temporary and unstable. You will need at least 15 or 30 years to pay off the loan and a part-time job will not offer any kind of income stability for the long term.
A job change can be acceptable for many lenders, especially if it is in the same industry with a higher income. If you change job before the application, you will need to explain this. If you think that your career move does not make sense, you may want to wait before applying.