Moving out of state? What to know about getting a mortgage to buy a home.
When moving from one state to another, one of the most common questions I get is…

Can I buy a house in the state I am moving to?
Obtaining a mortgage when moving to a new state is relatively straightforward. Many of the same requirements are in place as obtaining a mortgage where you now live but with a few added requirements. Before you even apply for a mortgage, I will need to know the answers to the following questions: 

• Are you going continue to work with your existing employer or do you have a written job offer/intent to hire letter from a new employer?
• Will you remain in the same job type as you have had for at least the past 2 years?
• Will your salary and pay structure remain the same or increases after you move?

What if you don’t have a new job lined up or a plan to stay with your current employer?

Not having a job lined up when you move from out of state makes your income/job stability volatile which could result in a denied loan application. The lender’s primary concern when you apply for a mortgage will be your ability to repay the loan, which generally translates to a favorable employment situation. Employment and income are two important factors that an underwriter considers when approving a mortgage.

Can I work Remotely and still get a mortgage?

Remote jobs are more common these days, if your employers work policies allows work-from-home or work remotely then you can often take advantage of these policies and keep your job when you relocate to the new state. However, you will be required to provide a letter from your employer stating that you will continue to be employed by them after your move to XYZ State at the same job position at the same pay terms or better. The letter will need to include the start date in your new state as well. After we receive the confirmation letter that you’ll be continuing working for your employer despite moving to a new state, everything else will proceed as normal.  It’s important to know that if you are getting an increase in pay which will be used to qualify for a mortgage after the move, we will require at a minimum of 1 paystub to prove the new pay rate.

Switching employers during the moving process.

If you’ll be relocating and switching jobs at the same time, you’ll want to make sure that you have a signed intent to hire/offer letter from the new employer before applying for a new mortgage. The letter of intent to hire/offer letter from your soon to be new employer will need to outline your position, start date, salary and salary structure.

It is also be important to continue working in a similar line of work that isn’t likely to end immediately. For example, if you’re leaving a job as a Nurse to become a store clerk worker during the holiday season, this could be seen as unstable employment.

Whether you are staying with your current employer or changing companies, we will contact your current or new employer to get a VOE (verification of employment) which will ask questions about your position and its longevity, your pay structure and status (W-2 employee vs. contractor, salaried or hourly vs. commission-based or bonus-based pay) and other questions targeted toward determining whether you are a low-risk prospect for a loan. VOE’s are requested at the beginning of the application process and just before closing to verify that nothing has changed and that you are still employed by that employer.

What to do I do when already own a house and want to buy another house in the state I am moving to?

Ideally, you would sell your current home the day you are moving and simply buy the new house in the new state later that same day or even a few days later but it’s rarely that easy.

Unfortunately, selling in advance of moving isn’t always possible but it is possible to obtain a mortgage to purchase a house in your new state if you can financially qualify to do so. Keep in mind you will need to have the funds for the down payment, and closing costs for the new purchase.  You will need to qualify to financially to pay for the added debt for the new mortgage.

For the overwhelming majority of people moving and buying another house, selling before they leave their current state is a must, in terms of time and finances. Most people count on the money from the sale of their home to buy their new house.

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Not sure where to start when moving from out of state?  Contact Leo today to help guide you through the steps of moving from out of state.

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