There are many people who want to try something new. That’s why there are those who change careers. There are different reasons for this. Some want to take advantage of better pay while others simply want to try a new experience.
There is nothing as exciting as starting your first day in your new job. There are so many things to learn and new people to meet. But for someone who is planning on buying a house, changing careers may not be the best idea because this will affect their eligibility for home loans.
This is because being in a new job would put you under probation, the period where the employer reviews your performance for a certain period. After the probationary period, the employer decides to either hire or fire you depending on how you did.
This can hurt your chances of getting a loan because lenders will consider you a high-risk borrower—someone who is most likely to default on the loan.
It’s because in the short period of time you are employed in a certain company, there is no assurance that you will stay long enough to earn the money to repay the loan. Even if you have a high salary, the fact that your tenure is for a limited time only worries lenders.
Your probationary status will make it hard for lenders to believe you’re going to repay the loan. There is always a risk of being terminated. And when that happens, there is no way you would be able to keep up with the monthly mortgage repayments unless you have a lot of money on standby.
The trial period people in a new job have to go through is something that can greatly affect their chances of getting a loan from a conventional lender. But the good news is there are several lenders who are starting to consider giving these people a chance through different types of mortgages. A good example would be a changing careers home loan.
From the term itself, it is a loan for people who have changed careers. This is one of the different probation mortgages lenders are making available to certain individuals. These are great because these allow people who are still new to a job to have the chance to buy their own house.
Knowing that not all lenders are going to turn their heads from you is a great thing. It means so much that there are some who are willing to take a chance in you and give you the opportunity to make your dreams of homeownership come true.
The question now is “how hard is it to qualify for this loan and how much can we borrow?”
It is possible to borrow as much as 90% of the loan-to-value ratio. This is if you are in a very good financial status and if you have a really good mortgage broker who can negotiate the best deals with lenders.
It’s not that hard to qualify as long as you can meet the requirements. Some of the requirements are the following:
- Your probationary period is not longer than 12 months
- You have extensive experience (if you are transferring to another department or changing companies)
- Your previous job is in the same industry as the one you currently have
You don’t even have to worry about not being under probation for a long time because there are lenders who will lend you money even if you are only a few days in your new job. That is if you can ask your employer to provide an early review of your performance and gauge your chances of getting hired full-time.
Your best chance of qualifying for this type of probation loan is to have a really good mortgage broker. A broker will help you learn more about changing careershome loan as well as other types of probationary loan. Their expertise and experience will greatly benefit you. Plus, it is very probable that they know a lot of lenders. The more lenders your broker knows, the better chances for approval you will have.
So if you are desperate to leave your current job and want to try out something new, don’t be inhibited by your fears of not qualifying for a home loan. With changing careers home loan there is nothing to be scared of. Get more info on changingcareers home loan by visiting different websites.