Buying a house when relocating can be stressful. Not only do you need to find a new home, but you are also moving to a different city or state. To help make your relocation experience and house buying easier, we listed a couple of tips on how to buy a house when relocating:
Research the Housing Market: Research the housing market before you move. By doing this, you will find out what is available for purchase in the area, the typical cost of a home, and information about schools. Check out the Cost of Living Index to compare the cost of living in U.S. cities. High property taxes, healthcare expenses, or daycare costs will keep you from easily making your monthly mortgage payment. So, it is worth considering a home in a different price range.
Get a Pre-Approval Letter From A Lender
Getting pre-approved by a lender will give you an official verdict on your home buying budget and it will give you buying power in this competitive market. Having a pre-approval letter from your lender makes the process easier and faster and it shows the seller that you are a serious buyer. To get pre-approved, we as a lender will calculate your debt-to-income ratio and assess your overall financial health by reviewing the following:
- Income statements, like W2s, 1099s, rental income, and tax returns.
- Assets, like bank statements and retirement accounts.
- Debts, including monthly expenses like student loans, credit cards, and other expenses.
- Records of bankruptcies and foreclosures.
- Current rent, child support payments, alimony payments, and any down payment gifts.
When you are pre-approved, you will receive a pre-approval letter. Not only does it officially let you know how much you can borrow, but it can come in handy when submitting an offer.
Hire an Expert Realtor in the Area: Now that you have your pre-approval letter, it is time to find a real estate agent in your new area. If you happen to know anyone who lives in that area and can recommend someone for you, it is a great option, or you can ask your lender. They usually work with many different agents in different states.
Even if you are able to be physically present throughout the entire house-hunting process, you want to hire a realtor that knows the area and the housing market that way she or he can advise you wisely.
© 2021 Premier Mortgage Resources, LLC | NMLS #1169. Equal Housing Lender. Not an offer to extend credit or commit to lend. All information contained herein is for informational purposes only and is not intended to advertise or otherwise solicit business. While every effort has been made to ensure accuracy, no guarantee is expressed or implied. All loans are subject to underwriting approval. Some products may not be available in all states and restrictions apply.
PMR is licensed in AZ – BK #0937529; CA – Licensed by the Department of Financial Protection and Innovation, under the California Residential Mortgage Lending Act; CO; HI; ID; KS; MN; MT; MO; NV; OR; TN; UT; WA; and WY. Not all branches are licensed in all states.