Is length of employment really important in getting a good rate when buying a home?

Yup. Most lenders want to see at least 24 months with the same employer. If not, they ding you as a higher risk. If you were at the old job for plenty of time (more than 2 years) I wouldn't give it another thought.





Since you have the mitigating factor of a great credit score, I wouldn't worry.

Is length of employment really important in getting a good rate when buying a home?
What seems like a lifetime ago I was a mortgage originator an was responsible for what we called at the time 'pre-underwriting' and making sure that a borrower was 'credit-worthy'.





There are some things you can do to ensure that your length of time with your employer is not a deterrent to you getting a good mortgage rate.





A) Don't make a change of profession - one 'red flag' we use to watch for is someone who made a change from an 'executive' profession to a 'blue collar' profession - in other words don't 'step down' (step up is not as detrimental obviously)





B) If you're a job hopper - beware - this is a huge red flag for underwriting - if you've had a number of jobs over say the last five years include a letter with your mortgage application that clearly explains WHY you've moved from job to job. Especially if these changes were do to changing to a better paying job, a job with better benefits, hours, etc. Don't be afraid to tell the truth!





C) If you're income goes down in your 'new' job this is a huge deterrent to a mortgage lender. Don't get trapped into taking lower paying jobs. This could be a detriment to you.





Remember this: the underwriter must determine and document that the income and employment is stable enough to pay the mortgage in years to come.





Changing jobs doesn't have to be detrimental if you understand what to provide to the mortgage company (or bank) BEFORE questions arise!





Good luck in both your job hunting and your home hunting!
Reply:No...it just has to meet the minimum
Reply:As long as the new job is the SAME LINE OF WORK, then you are okay. make sure there are no gaps in employment. Like if I, as an Escrow Officer, went to work for another Escrow or title company. It's the SAME job, just a different place, maybe for more money.
Reply:Stability affects your standing with your bank or loan company. They want to know where their money will be coming from. If you are a job-hopper every few months, it looks bad. But, it is only one of many things the loan company will be looking for, so you should not be concerned.
Reply:Great question!





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It bothers me greatly that so many people, young AND old, have been taken advantage of and NEED answers to prosper financially and not become a mortgage victim. If you DON'T get educated BEFORE making a decision, you're next in line to be ripped off. Count on it.





I've been posting answers under numerous aliases on Yahoo! because I have to keep creating new accounts to do so. It seems the "establishment" prefers to keep the public in the dark when it comes to exposing the truth about anything which could actually help them avoid catastrophe. When faced with a serious choice about something in your past think about what you should have been made aware of by someone in "authority", but weren't. If you knew what "they" knew, wouldn't you have made a better decision?





Whether you're a first time buyer, moving up, refinancing, buying a foreclosure, short sale or trustee sale or auction, you're going to need financing in place. First. Doing it ANY other way is wasting your time and a professional real estate broker won't even LOOK at you or your offer unless your financing is in place. Don't believe me? Try it.





If you want to learn the industry from the inside, visit my website. I can't type the internet address here or I'll be creating yet another Yahoo! account. I'll spell it for you. MortgageSelfDefense[dot]com. Type that into your web browser as you would a regular internet address and you'll get there.





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I look forward to helping you.





P.S. I'm also a Real Estate Broker in two states (CA %26amp; NV) and have been since 1981. Having been so gives me a unique perspective on the industry.