Mortgage  Question?
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If you move wait until employed before apply mortgage?

Should you wait until you are employed to apply for a mortgage if you move to a new city? I have money for the down payment and someone who can co-sign the mortgage but I may not have a job initially when I move.

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

When you apply for a mortgage, lenders focus on your credit score, debt-to-income ratio and other mortgage qualification guidelines including your employment history to determine your ability to qualify for a loan. Lenders usually require that borrowers have two years of continuous employment history to qualify for a mortgage unless you recently graduated from college. Many lenders permit a break in a borrower's employment of less than a year if the borrower has extensive experience in a particular field of work or if the borrower has moved, which applies to you.

Regardless of a borrower's employment history or break in employment, most lenders require the borrower to be currently employed to qualify for a mortgage, even if you have someone who is willing to be a co-mortgagor on the loan. If the "primary" mortgage borrower is not employed, the only condition under which the lender usually permits a co-mortgagor is if the co-mortgagor lives in the property. So unless your co-mortgagor occupies the property you buy, you should wait until you have a job before you apply for a mortgage.

Finally, we always recommend that you contact multiple lenders to understand how they would handle your unique situation. You can review lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders as as mortgage qualification guidelines vary. Plus, comparing lenders is the best way to save money on your mortgage.

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About the author

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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