Relocating to another state doesn't have to be stressful! With a solid team and a plan of action, you'll be able to remove the fog.
If you're looking to relocate, you're most likely already considering what your job transition is going to look like.
And this is the perfect place to start because this is exactly what the lender wants to know up-front. Lenders want to see consistency of income and employment. And then definitely do not want you to close on a home and be unemployed.
So, your first step is to find jobs and line up a job offer. The job offer is going to tell your lender the terms of your future employment and will help the lender know your expected income.
Ideally, you'll want to be in the same line of and with the same or increased pay. If you don't have these things, you need to talk with your lender to see if that job change will be accepted by an underwriter.
Another thing you'll need to consider when moving to another state is the added expenses you might run into. Here are two expenses you could encounter when buying outside of your state:
1. Reserves: extra money left in your bank account to make sure you can cover the mortgage payment from the time that you close until you start your new job
2. Emergency fund: for travel expenses, moving expensive, repairs on the house your selling, or costs to end the lease where you rent, and any additional expenses
After you've worked out what your job transition will look like, you'll need to consider the timing of your move with your job transition.
This is where you need to talk to a lender about "contingency". Contingency is basically just saying "do I need to sell my home first and then buy, or can I buy a home and then sell".
This has to do with your debt-to-income ratio. So, talk with your lender and let them know about your plans to move out of state.
They'll help you figure out if you need to write a contingent or non-contingent offer.
Most people can't make 2 mortgage payments fit in their debt-to-income ratio, so they have to write a contingent offer.
Meaning, they need to sell their home first and then buy. And, most people don't realize that you can start buying and selling at the same time.
In fact, this is the most common way that I see people relocate to a different state.
First, they put their home on the market to sell. Then, they start aggressively looking for a home to buy. When they find a house they love, they write an offer contingent on the sale of their house.
Then, when their house sells, they can close on the purchase of the new home a couple days after the closing of the sale.
Now, this process has to be very carefully coordinated with your realtors and lender. Make sure everyone is on the same page.
Often, when my client are moving from another state to purchase a home, I will send an email to everyone with the expected timeline of everything from the sale to the purchase. This makes sure everyone has realistic expectations for the move and no one is surprise.
Once you've line up your job transition and crafted a game plan with your lender and realtor, you're ready to start putting your plan in motion!
Don't start moving on things before you have nailed down a plan!!
Finally, one thing to consider is the realtor you're using when purchasing.
1. Make sure your realtor is experienced with relocations. Ask them their wins and losses around buyers moving from out of state so you can get a realistic expectation of what works and does.
2. Also, make sure your realtor is tech-savvy. Some realtors go the extra mile for relocating buyers and will do personal video walkthroughs of homes to send to you so you don't have to travel
Hey, my name is Kyle and I'm a Mortgage Advisor serving Tennessee, Florida, and Ohio. My goal is to help you get a crystal-clear home loan that helps you win the house you love. If you're ready to create your home-buying plan, you can reach through any of the ways below:
winthehouseyou...
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