I graduated nearly two years ago and started working in my field, but I’m planning to return to school soon. My husband, a recently licensed journeyman electrician, earns enough on his own to maintain our debt-to-income ratio at around 30%. Both of our credit scores are between 775-800. If I reduce my job to part-time or quit for school, will it significantly impact our ability to secure a mortgage? We’re considering applying with just his income if necessary. Would appreciate any insights, especially from those familiar with such situations.
Om said:
Avoid changing jobs or discussing potential job changes with lenders as they prefer stability. Any hint of income instability could lead to loan denial.
Make sure he’s the only one listed on all the paperwork if you do change jobs; otherwise, your job change could impact the loan approval negatively.
Om said:
Avoid changing jobs or discussing potential job changes with lenders as they prefer stability. Any hint of income instability could lead to loan denial.
In my experience, changing jobs wasn’t an issue as long as it was within the same field. We moved and both got new jobs, but only my income was considered because I stayed in my field.
If your husband’s income and credit alone meet the loan requirements, your employment status might not be as crucial. Consider getting a pre-approval now to confirm your standing before making any changes.
In our mortgage, my husband’s income wasn’t considered due to a field change, but mine was sufficient. This might be similar to a situation where one spouse doesn’t work.
As long as he qualifies on his own, there shouldn’t be a problem. However, keep an eye on how student loans might affect your debt ratios depending on the type of loan you choose.
Peyton said:
As long as he qualifies on his own, there shouldn’t be a problem. However, keep an eye on how student loans might affect your debt ratios depending on the type of loan you choose.
Thanks for the reminder about student loans! My current payments are minimal, and I don’t anticipate needing much more for now.
If he can support the mortgage alone, it’s simpler to apply with just his income, especially if you’re in a community property state like Washington. His consistent work history in the same field should help.
@Jordan
It’s reassuring to know we could apply with just his income. He has been with the same union for over five years, which should count in our favor.
Logan said:
@Jordan
It’s reassuring to know we could apply with just his income. He has been with the same union for over five years, which should count in our favor.
It’s usually best to have both spouses on the mortgage for financial equity reasons, but being on the deed is the most critical part for ownership rights.
@Gale
Absolutely, you can be on the deed without being on the mortgage. These are separate matters and one does not necessarily affect the other.
Clove said:
@Gale
Absolutely, you can be on the deed without being on the mortgage. These are separate matters and one does not necessarily affect the other.
That’s good to know! It sounds like we have some flexibility with how we apply and still ensure both of our rights are protected.
@Logan
Exactly. In community property states like Washington, you would still have rights to the property in the event of a divorce, even if you’re not on the mortgage. You can also be added to the deed without being on the mortgage, which might be the best route if you’re concerned about credit implications from potential new debt.
@Clove
That clears up a lot, thanks! We’ll consider all these factors carefully to decide the best way to proceed with our home purchase.
I successfully applied for a mortgage solely with my husband’s income after I quit my job to become a SAHM. We secured financing with just his offer letter, which was contingent on his graduation.
Ray said:
I successfully applied for a mortgage solely with my husband’s income after I quit my job to become a SAHM. We secured financing with just his offer letter, which was contingent on his graduation.
It’s encouraging to hear your experience! It seems like as long as the main applicant has stable income, lenders are quite accommodating.
We did something similar where I was the sole borrower but both of us are on the deed. It simplifies the application process if only one spouse has stable income.
Lenders generally require confirmation of stable employment history before closing, so it’s important to maintain your current employment status until after the loan is secured.
Timing your application to ensure it aligns with maintaining employment stability can be crucial. Consider how your job change might impact the process.
As long as your husband meets the financial criteria on his own, your job change shouldn’t be an issue. You can still be included in the property’s deed.