Short answer
Tell your loan officer right away. Lenders recheck your employment shortly before closing: for conventional loans, Fannie Mae requires the lender to verify your job no more than 10 business days before the note date, with a few exceptions. A layoff can stop the loan until you have new qualifying income. A new job in the same line of work at the same or higher pay can often still work, with new paperwork.
Does the lender really check again?
Yes. Even after approval, the lender confirms you still work where you said, usually by calling your employer or using a verification service, close to the closing date. If your job or pay changed, it shows up then, and a surprise at that stage can delay closing.
I'm switching to a new job. Can I still close?
Often, yes, if the new job is similar work and the pay is the same or higher. The lender will usually want an offer letter and, depending on the program, a recent pay stub before closing. Changing from salary to commission, bonus or self-employment is harder, because that income usually needs a track record. See a mortgage with a new job and overtime, bonus and commission income.
How does FHA handle a job that starts after closing?
HUD's Handbook 4000.1 calls this expected income: pay from a new job, a raise or retirement that starts within 60 days after closing. The employer has to confirm in writing the amount and that it's guaranteed to start within 60 days, and the lender checks that you have enough income or savings to cover your payments until it does. It can't be used if the job is with a family-owned business.
What if I'm laid off?
Without the income you qualified on, the loan generally can't close as approved. A co-borrower's income might still qualify, or you might wait until you start a new job. Check your purchase agreement's financing contingency deadline and talk with your real estate agent about your options; see contingencies and earnest money.
What about going on leave?
Parental, medical and other temporary leave have their own rules, and many borrowers on leave can still close; see a mortgage on parental leave.
What else should I avoid before closing?
Don't open new credit, finance a car or furniture, or move large amounts of money between accounts without asking first. Each can change your approval. See what happens after you apply.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Expected Income (TOTAL)
- Fannie Mae Selling Guide B3-3.1-04, Verbal Verification of Employment
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.