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When applying for a mortgage, lenders consider various factors to assess your eligibility for a loan. Your employment history is one important factor that can impact the mortgage approval process. Here are a few points to understand about the impact of your employment history when applying for a mortgage.

  1. Stability and consistency: Lenders prefer borrowers with a stable employment history, as it demonstrates a steady income and reduces the risk of default. They typically look for a 2-year work history.
  2. Length of employment: The duration of your employment with your current employer or in the same line of work can influence the mortgage approval. If you just graduated from school, showing your transcripts can help with your 2-year work history.
  3. Income level: Lenders assess whether your income is sufficient to cover the mortgage payments, along with your other financial obligations. A consistent employment history with regular salary increases or bonuses positively impacts your income level and enhances your chances of mortgage approval.
  4. Self-employment: If you are self-employed the approval process may be slightly different. Lenders typically evaluate self-employed borrowers based on their business income and stability. They may require additional documentation, such as tax returns and financial statements.
  5. Alternative income sources: In some cases, lenders will consider sources of income, such as rental income, investments, or government benefits. These additional income sources can strengthen your mortgage application.