January 19, 2023 by

If you’re planning on making a big move, you may be wondering how to get a mortgage when relocating. It might seem challenging at first, but the process is generally the same as any other mortgage. However, the main considerations that mortgage lenders place extra emphasis on are whether you’re employed and what your primary goals are.

In this article, we’ll cover everything you need to know about getting a mortgage when relocating.

Is Relocating Worth It?

It may seem daunting, but relocating could come with significant benefits for your career, family, and more. It’s a great way to establish roots in a new area and could also present new opportunities; better services, better products, and even better home prices are all possible when relocating.

This brings us to one of many relocation benefits: it can be cost-effective.

Lower taxes, mortgage interest rates, and down payment amounts could all result from relocating. Additionally, you might be able to benefit from unique financing choices like employee credit or mortgage loans with no interest. Even aside from its financial aspects, relocating could also mean good news for your family and friends (if you choose to move closer to them).

Still, relocating is a big decision that should be made with careful consideration. As with any home loan, you should always do your research and consult the necessary professionals to ensure you make the right choice. Total Mortgage employees are available 24/7 to help you explore your options.

Do I Need to Be Employed to Relocate?

The primary concern for lenders is your ability to repay the loan, which translates to a favorable employment situation. So the short answer? Being employed will definitely help you relocate – but it’s not that simple.

To account for most scenarios, we’ve broken things down to explain relocating when employed, newly employed, or unemployed. Pro tip: always be sure to get pre-approved for a mortgage regardless of your employment status.

Relocating When Employed

When you have a typical job, getting a mortgage to relocate is fairly straightforward. Lenders will want to see proof of your income and verify the general stability of your job. They’ll also look at your credit score, debt-to-income ratio, and other factors to determine whether you’re financially fit to get a mortgage – all regular steps of the process.

The more stable your job and financials are, the less risk you’ll present as a borrower.

Relocating with a mortgage when self-employed, on the other hand, can be a bit more complicated. Self-employed borrowers will need to provide additional documentation to verify their income and may be required to make a larger down payment with a co-signer. These extra steps are taken to confirm the added element of a self-started business – but once the details are verified, relocating when self-employed is easily possible.

If you have questions, don’t hesitate to contact a licensed mortgage professional. They will look at your unique situation and recommend the best loan options for you.

Relocating for a New Job

If the opportunity is good enough, you may find yourself relocating for a new job. Congratulations! Just be sure to do the necessary research and prepare for a slightly different mortgage process.

Getting a loan to relocate for a new job may involve different verification methods. This will ultimately depend on your lender, but you may be required to provide an offer letter from your employer. In these cases, it could be used as proof of income – even if you haven’t exactly started at your new job yet.

Some companies offer relocation packages with various components, such as guaranteed buyouts or mortgage relocation programs. Be sure to check with your new employer and lender to confirm all the details before moving forward.

Relocating When Unemployed

Another possibility when relocating is doing so while unemployed. Is it possible? The short answer is yes, but it may come with more obstacles along the way.

If you’re looking to get approval for a mortgage while unemployed, be ready to share documents with your lender that verify funding of some kind. This may include (but is not limited to):

  • Excess savings
  • Inheritance funds
  • Investment money
  • Retirement income
  • Alimony or child support payments
  • Income from rental properties or side work (non-permanent employment)

Remember: lenders won’t just review your past income. If you’re unemployed, they’ll look at your current financial situation as well to determine whether you’re eligible for a loan. If you have a reliable stream of income from investments or other sources, a relocation mortgage could be possible. However, you’ll need to provide proof of these funds and be able to demonstrate that you can make regular payments.

If you have any questions about relocating with a mortgage while unemployed, contact a licensed loan expert near you or visit our blog for more information.

Are there any risks associated with taking out a mortgage when relocating?

If you aren’t changing states for a new job, there may be some risks involved with getting a mortgage in a new area. Let’s cover a few:

  • You may not be able to find a job in your new location that pays enough to cover mortgage payments.
  • Your new mortgage payments could correlate with a higher cost of living, resulting in higher costs.
  • If you have a home that you’re selling or leaving behind, it may not return enough money to cover your new mortgage – resulting in a significant chunk of debt.
  • If you’re relocating to a place far from your job, you could lose it and jeopardize your income.

With these reasons in mind, it’s important to carefully consider your options when taking out a mortgage to relocate. Apply with a loan expert to cover all the details and ensure that your mortgage process is done right.

Your Guide to Relocating with Total Mortgage

With Total Mortgage, your relocating experience can be easy from start to finish. Find a loan expert near you to get a tailored assessment of your needs and the best mortgage products for your situation.

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