How to Get a Mortgage When Relocating

Whether it’s for a new job, family changes, or just a fresh start, buying a home in a new city can be exciting – and challenging. Moving your family and belongings is stressful, but getting a mortgage, even in another state, doesn’t have to be! Check out our tips below on how to make the “mortgage move.”

Get Pre-Approved with a Lender First

You don’t need to move to your new state before you apply for your mortgage. So as always, the best thing to do when buying a home is to gather your most recent W2s or 1099s, paystubs, and bank statements, as well as any offer letter or contract from your new job and get pre-approved first with a lender that is licensed in your new state. You don’t even need to meet with your lender in person; you can get pre-approved on your phone! A pre-approval means you’ll know exactly what you can afford – and no one needs unpleasant surprises when relocating, right?

Also, Atlantic Bay’s Fast Track Buyer Advantage program can get you a pre-approval even before you’ve found a home!

Emphasis on Employment

When relocating, your job is probably the biggest piece of the mortgage puzzle. Lenders always consider stable employment, preferably for at least two years, as a factor in loan approval. If you’re transferring your current job, or you work from home but are moving to a less-expensive area with the same job, no problem! But what if you’re embarking on a new adventure?

Getting a Mortgage with a New Job

Suppose you're changing jobs within the same field. In that case, that switch shouldn't affect your ability to qualify as long as it doesn't negatively impact your income. For example, a nurse moving from a Tennessee hospital system to an Idaho system is fine. Better yet, a signed offer letter from your new employer can serve as proof of income.

Now let’s say you’re changing to a whole new field – nurse to teacher, for example – or need some time to look for a new job after your move. That’s OK, too – but your lender will dive deeper into your employment plans, and you’ll need savings to lean on while establishing yourself in your new city. You may need to rent for awhile to build up your employment history. If you still want to buy a home, and you’re relocating with a spouse or partner with a steady income, that person can be a co-borrowerAn additional borrower whose income, assets, and credit history are used to help the primary borrower qualify for a loan.co-borrowerAn additional borrower whose income, assets, and credit history are used to help the primary borrower qualify for a loan..

Finally, remember that not all salaries are alike. Study up on the cost of living in your new locale to see how much house your expected salary can get in the new market. You might get more bang for your buck!

Military Moves

If you’re an active duty military member (thank you for your service!) and relocating to your own new home, you’ve already got the employment box checked – great! A VA loan comes with no down payment, and your branch will offer relocation assistance programs (RAP) such as per diems, counseling, and moving help for you and your family.

If you’re retired from the military and buying in a new area, your lender will still need your new employment or retirement income for approval. However, the VA loan’s great benefits are still all yours, including no loan limits with full entitlement.

Selling a Home While Relocating

Already own a home and want to sell to purchase in a new location? Here’s the good news: You already know the ups and downs of the homebuying experience – and you realize it doesn’t always go perfectly. While simultaneously buying and selling can be challenging, you can navigate it smoothly with some patience and help from the right lender and agents.

One tip: avoid buying a new home before your current home sells. You don’t want to have two mortgages (plus electricity payments and gas bills…) while adjusting to a new city or job and building a new social network.

Atlantic Bay is ready to help with mortgages here, there, and everywhere. Just give us a call!