I am closing on a home in the next few weeks. Is there a period of time AFTER closing I should wait before I look for a new job? Is there any process post closing I need to wait for? I assume I would want everything to go through at the bank before changing employment.
Once the loan is closed, the loan is closed. There's effectively no difference in a mortgage that is 10 days old compared to 10 years, from the lender's perspective - the requirement is essentially that you make payments on time.
That said, it's probably not a good idea to tell your mortgage agent that you're looking for a new job now, before the loan closes. Lenders like stability, and knowing someone is job hunting might cause them to think that your income may not be stable, which could jeopardize the loan. And it's certainly not a good idea to change jobs in the middle of the mortgage process, for the same reason - lenders generally require documentation at the beginning of the process (a credit report, proof of income, etc) and then they will ask for some of the same documentation at or immediately before closing, to make sure nothing has changed. Again, they are looking for stability - changing jobs right before closing without being able to explain it may cause red flags (especially, of course, if your income drops, or you move from a full time position to a contract position, etc).
If you feel that you must change jobs after applying for the mortgage but before closing, you should discuss that with your lender and be ready to address their concerns about proving you have a stable income. If you are able to wait until after closing, then you're in the clear, and the bank doesn't need to even know.
This falls into the category don't do anything that will make the lender nervous. You also shouldn't buy a new car (I know somebody who did this), or get a large deposit in their account (now they need to prove it wasn't another loan).
There are two times where they check: when you apply, and just before closing. You need to make sure that the old company has no idea that your are leaving. Don't put in your two week notice, don't even get close enough to getting an offer that your manager will be contacted for a reference.
If you wait till after the closing to get serious about the search you should be fine.
There are two exceptions:
- If the loan program you have is only open to a list of professions/employers. Some jurisdictions have assistance for teachers, nurses, police, and firefighters. If you are under one of those programs there could be a penalty clause if you don't maintain that employment for a minimum amount of time.
- If the new job will mean that you turn it into a rental property. Some loan documents require that you live in the property for a number of months before renting it.
After closing you are ok.
But before closing you need to be careful. When signing the last of the loan documents, it is not uncommon for them to ask you for one last pay stub. Once that's done, you've got the loan, got the house, and you are good to go.
I've done this myself -- closed on a house and immediately changed jobs. Every proof of income and piece of documentation was from the old job, though. They didn't ask, I didn't tell.
I had a lender call my buyer's work for employment verification WHILE SHE WAS SIGNING CLOSING PAPERS. Do not change a job until the deal has funded and recorded in your name!