Changing jobs during/after mortgage process ?

Question

I am a teacher and I’m done working at the end of May. I’m playing with the thought to get a real estate license instead of signing on for the next school year.

I’m looking for an investment property but also for a house for myself, however places with a rental unit where I want to buy are not affordable right now.

My loan officer said as long as I continue to have a full time employment with similar pay it wouldn’t affect my ability to obtain a loan.  However, a real estate agent’s pay is commission based and I would have to wait two years to get a loan.

Should I try and get a house under contract quickly before my time as a teacher is up or are there any creative ways to finance a purchase

in that situation ? I don’t want to wait two years because I’m worried I won’t be able to afford anything then.

One option I thought of was to buy a small investment property in cash and then use a heloc to take out money to buy another house.

Are there any other ways to do this?

Theresa Reynolds · Answer

@ Cameron Tope

Why would you not make any money for 2 years as a real estate agent?

Theresa Harris · Answer

Why not work on getting your license over the summer and working part time once you have it while teaching one more year?  Better to have guaranteed income.

Cameron Tope · Answer

Hey Theresa,

I agree with @Patricia Steiner - you need to hold off on the income verification before you change jobs.

As soon as you become an agent you're self-employed, which means loans are harder to qualify for AND usually more expensive.

What are your goals?

If you become an agent and don't keep your full time job, be prepared to make almost no money for two years.

Patricia Steiner · Answer

You will need to have employment and income verified for a mortgage - up and through closing.  Better hold off on changing professions - especially to one that comes with no salary - until you're closed.

Michael Plante · Answer

I would get it closed before telling the lender you are changing jobs