When it comes to mortgage approval, there is often the assumption that mortgage lenders only care about whether the applicant is employed. Gainful employment is essential, but the applicant's employment is only the beginning. Mortgage lenders often dig much deeper when it comes to employment status. 

1. Virtual Commuting

During the pandemic, many companies shifted their employees from the traditional office environment to at-home or virtual employment. As the world is transitioning back to normalcy, some employers are committed to maintaining this model, while others are slowly shifting toward an in-office model. 

A problem with this transitioning shift is when the applicant has moved away and no longer resides in the same area as their traditional workspace. Some lenders find this scenario risky because in the event the employer calls the employee back into the office and they have moved, the individual will likely lose that job. Some lenders will require the applicant to get a formal letter from HR stating their position is permanently remote. 

2. Earnings Potential

Again, people often stop at the fact of whether an applicant is employed to determine their approval odds. However, you might be surprised to discover that some people can be approved for a mortgage even if they are not employed.

In addition to considerable savings, people in this group typically must have a skillset or educational background that makes it easier for them to find a job. A physician or pilot are two career routes that sometimes fall into this category. All lenders have different guidelines, so you must inquire about this factor with each lender. 

3. Length of History

How long an individual has been employed with a particular company is also important, not to be confused with how long they have been working.

For example, consider someone who has worked in customer service for 22 years but has worked for four companies for just a few months at a time over the last three years. It is possible that this applicant would be denied the mortgage because they do not have enough recent, sustained employment, which translates as a risk for a lender. If you want to change employers, waiting until you have secured your new home might be best. 

Improving your chance of a mortgage approval begins with strengthening your knowledge about the process. Speak with a mortgage lender service such as USA Mortgage-Volunteer Mortgage Group to ensure you are knowledgeable about the mortgage process.