Mortgage  Question?
Wait Until Job Transfer Complete Before Apply Mortgage?

I am transferring cities for my job and I want to buy a home in the new city with a VA loan. My daughter is a student in the city where I am moving but she will have a job after graduating. Should I wait to apply for the VA mortgage after my job transfer is completed or can my daughter apply for the loan with me as a co-borrower before I move ?

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

Thank you for your service to our country. My recommendation is that you contact lenders in the new city to get pre-approved for your mortgage but do not apply for the mortgage until your job transfer is finalized. Getting pre-approved now accelerates the mortgage process when your job transfer is official and also enables you to identify and address any potential issues before you submit your loan application. As soon as your employer can verify your job transfer, apply for the mortgage. After your job transfer is verifiable, you will not have any issue with the property being classified as non-owner occupied. Please note that second homes are not eligible under VA Loan Program guidelines, otherwise that could be a financing option.

Having your daughter apply for the loan before she graduates does not work in this case. Because she has not started her job yet, lenders will not attribute any income to her. Additionally, mortgage lenders do not consider student loan disbursements as income. Moreover, if you decide to include your daughter as a co-borrower when you apply for the mortgage, her student loan payments are considered debt and included in your combined debt-to-income ratio. Depending on her income level (assuming she is employed when you apply for the mortgage), the student loan payments may reduce the mortgage amount you qualify for. We provide a comprehensive overview of student loans and the mortgage process on FREEandCLEAR. Finally, unless your daughter is eligible for a VA loan, her half of the mortgage is not guaranteed by the VA program.

My recommendation is that you contact multiple lenders to understand how they would handle your situation. You can contact VA lenders in your new city by clicking VA INTEREST RATES and selecting your state in the refine your search menu. We advise you to contact at least four lenders as qualification requirements can vary.

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About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR.  Harry is a licensed mortgage professional (NMLS #236752). More about Harry

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