I am currently thinking about changing jobs in the midst of purchasing a new home. To further complicate matters, the new job may be a 1099 (contract) situation.
I work in the tech industry, which currently has a very strong job market. I have fantastic credit and a history of steady income (including some 1099 work in the past). My wife also works (but we could not get this loan based on her income alone).
Do lenders take all of these factors into account during the lending process? How much does a job change affect the mortgage process?
I recommend you ask this question to a qualified mortgage broker. We just closed on our first house. My wife & I have had several years of stable jobs, good credit scores, and a small side business with 1040 Schedule-C income... and we were surprised by the overwhelming amount of documentation we needed for the loan. For example, we had 3 checks deposited to our bank account for $37.95. We had to provide copies of the checks, deposit slip and a letter explaining the deposit. One reason we might have had so much trouble: the mortgage broker we selected sold our loan to a very picky lender. On the plus side, we obtained a competitive rate with extremely low closing costs on a 30 year fixed mortgage. However, I can't imagine the headaches we would've incurred if one of us were changing jobs to 1099 income.
I just closed on a refi last week Thursday. The app went to the lender mid to late May. The lender called my employer for an employment verification on the Monday before closing. I would wait till after the loan funds to change jobs.
FWIW, we signed on Thursday afternoon, escrow had to FedEx the originals to the lender on Friday, lender should have received it on Monday, we are still waiting to fund. I expect the loan to fund no later than tomorrow.