There’s a Great Reimagination of careers poised to happen in 2026 and 43% of workers are preparing for the change by hopefully switching their careers this year, according to a new report by FlexJobs.
But if you’re one of them and also want to buy your first home, you might want to think twice. Doing so can be risky, as most mortgage lenders prioritize income stability and follow the “two-year rule.”
“The two-year rule doesn’t always apply, but the idea is that lenders look for a two-year history of consistent employment or income levels in the same line of work,” explains Jake Vehige, president of mortgage operations at Neighbors Bank in Columbia, MO.
Before you go ahead and pursue a new career path as a first-time homebuyer, educate yourself on how it might affect your ability to lock in a mortgage.
Then, decide whether it makes sense to hold off on your purchase until you’re in a more stable financial spot.
Why career changes create concerns for lenders
Mortgage lenders look for income stability when homebuyers apply for loans.
While leaving your full-time employer to go to another one or start your own business can be a good move, it’s not necessarily reassuring for lenders.
“If someone quits a salaried marketing job to become a CMO at a company or start a consulting business, we typically can’t factor in their new income immediately—even if they’re earning more,” explains Vehige.
Also, self-employment income often requires a two-year history to average and verify, and there’s additional complexity when someone moves from W-2 to commission-based or 1099 work.
Cody Schuiteboer, president and CEO of Best Interest Financial in Detroit, points out that, at the end of the day, lenders don’t really care where you’re going. They care more about where you’ve been.
“Gap years” can also raise questions. If you have a break in employment, the underwriting teams need to understand why and confirm that you’ve been able to reestablish a stable income.
“A short, explainable gap with strong reemployment is manageable. On the other hand, an open-ended transition with unpredictable income is harder for us to underwrite,” explains Vehige.
The consequences of switching jobs during the mortgage process
Once you’re under contract for a home, lenders will actively verify your loan file, which is a collection of documents they gathered during the application process.
“Employment isn’t something we check once and never come back to. Most lenders will reverify your employment on a regular basis, from the moment you’re pre-approved all the way until right before closing,” explains Vehige.
If you change jobs while you’re already under contract, lenders will need to reevaluate your loanfile.
“Even if your income is higher, we may need new documentation. This could include updated pay stubs and a new verification of employment. Sometimes the file has to go back through an automated underwriting process to make sure the numbers still line up,” says Vehige.
Starting a new job 30 to 60 days before closing can be especially tricky. If you haven’t received a paycheck yet, or if the structure of your income changed dramatically, you’re not necessarily out of luck and may still get approved. However, you can expect delays or new conditions, such as adjusted loan terms or rates.
Schuiteboer explains that last year, he had a first-time buyer client who had a pre-approval set at $485,000 and accepted a new job a few weeks before closing.
“The position was in a completely different field, but it was a win because it was $18,000 more. The lender, however, withdrew the approval within 48 hours of the employment verification update, and my client had to forfeit their earnest money on a home they had already emotionally moved into,” explains Schuiteboer.
The monetary loss was a big hit, but the emotional impact was even greater. So, what’s the takeaway here? New jobs are great, but once you are in the mortgage process, try to treat your financial life like it’s in a holding pattern whenever you can.
What to do if you’re unhappy with work but want to buy a home soon
Buying a home should increase your stability—not compete with it. The key is aligning your career and homebuying timelines so they support each other instead of giving you an even bigger headache.
If you’re unsatisfied with your career situation but hope to buy your first home in the next 6 to 12 months, keep these expert tips in mind.
Talk to a lender early—and before you make the career move
Don’t keep things to yourself.
“An honest conversation with your lender will help you understand what type of career change and income levels will cause headaches and which will make things easier,” says Vehige.
Hold on a little longer if you can, to avoid employment gaps
If possible, line up a new job before leaving your current one. The more consistency and stability in your employment history, the better.
Don’t forget to keep documentation of the transition to help your underwriting team tell the story in your mortgage file.
Save your reserves
Easy access to cash gives you flexibility, so do your best to keep as much of it in the bank as possible. Most lenders will ask for copies of your bank statements.
“Cash also helps curb risk factors that may (and are bound to) come up in the underwriting process if you switch jobs,” explains Vehige.
Do some self-reflection
Ask yourself a few questions: Is it a good time to change jobs and buy a house? Can you prioritize one while you prepare for the other down the road?
“Life’s timing can be complicated, but if you don’t need to do both at once, maybe wait. It’s up to you to decide whether a house payment will give you breathing room or add more pressure during an already complex transition,” Vehige explains.