When you’re in the middle of buying a home, stability is key—especially when it comes to your income. Lenders use your earnings to calculate your debt-to-income ratio (DTI) and determine whether you can qualify for a mortgage. Any significant change in your job or income during the loan process can create challenges, and in some cases, even cause you to lose your approval.

Why Income Stability Matters in Mortgage Approval

Mortgage lenders look for steady, reliable income because it shows your ability to make consistent payments. If your income changes, it can cause the lender—or the underwriter reviewing your file—to re-examine your financial profile. This may delay closing or put your approval at risk.

Examples of Income Changes That Can Affect Your Loan

Some changes are obvious, while others may not seem like a big deal but can still impact your approval. Here are a few situations to watch out for:

• Quitting your job or changing employers mid-process
• Reduced work hours or switching from full-time to part-time
• Short-term disability leave
• Maternity or paternity leave
• Loss of overtime income or cutting back on bonuses/commission

Even if the change is temporary, lenders may not be able to count your full income, which can increase your debt-to-income ratio and reduce your buying power.

What to Do If You Anticipate an Income Shift

If you know your income may change during the mortgage process, the best thing you can do is be upfront with your loan officer. A professional mortgage team can help you:

• Assess how the change will affect your pre-approval
• Explore options to keep your loan moving forward
• Decide whether it’s better to pause the process until your income stabilizes
  

The Bottom Line

Any shift in income—big or small—can impact your mortgage loan approval. Before making job changes, reducing your hours, or planning extended leave, talk with your mortgage professional. A quick conversation can help prevent surprises and protect your ability to buy the home you want.

If you’re considering a job change or expect your income to shift while applying for a home loan, contact Liberty Star Mortgage in Fulshear, Texas today. We’ll help you navigate your options and keep your path to homeownership on track.