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A Conventional Mortgage Guide to a Relocation

Considering a move to Utah or California and wondering about the mortgage process?

Congratulations on the decision to move to a new state! This relocation guide is here to help you understand the process of moving with home financing. Do you need urgent help with a mortgage? Please feel free to reach me using one of the many methods available on my contact page.

While in the planning and preparation stage, consider researching state tax rates, including income tax, property tax, and sales tax, to determine how the move will impact your finances. A cost-of-living calculator can be helpful to determine everyday expenses.

You’ll also want to know utility rates and setup expenses, moving expenses and to find out what the state-specific rules are regarding your driver’s license, registration, and license plates. It helps to use services like city websites, local news, Google Maps, Google Streetview for neighborhoods, social media discussion groups (try my Leaving for Utah group) and more.

My aim with this guide, however, is to dive in to the home financing side of things to help answer common relocation questions.

Note: This guide is to help plan a relocation with a qualified mortgage (QM) using a Conventional home loan which offers lower loan fees, competitive interest rates and allows for no mortgage insurance with 80% loan-to-value. A Conventional loan likely offers you, the borrower, the lowest payment for most situations, especially with a significant down payment.

Relocations is one of my mortgage specialties. If you aren’t relocating, I do have multiple loan programs and a simple application process that makes me a great option for all of your home financing needs. Scott Buehler is licensed to originate home loans in the entire state of Utah and California. Please visit my home loan locations served page to learn more.

How to Plan a Relocation with a Conventional Mortgage?

Whether you are relocating to Utah or relocating to California, if you plan on buying a home and plan on financing that home, you’ll need a mortgage. This guide is here to help clear up some uncertainties and to help plan the transition so that is as smooth as possible.

Income Considerations

As with most mortgages, your loan qualification is based on your debt-to-income ratio including the new home purchase at your new location.

If you are retired and get a pension, get social security, disability, on a retirement fund distribution plan or some other form of regular income that is documented, we can use that as part of your qualified income.

If you are self-employed, we will need two years business and personal taxes. The business will need to show the ability to continue its income after a relocation.

If you plan to keep your job and work remotely, you may need a letter on company letterhead from your employer stating there will be no impact with your relocation.

If you plan to change jobs, we will need a commitment letter from the new employer. To have the smoothest loan experience, plan on having at least one paystub from your new employer before asking for a pre-qualification letter.

If you plan to change jobs and it is not possible to start the job prior to your move, the following criteria applies:

  • Only allowed on purchase transactions.
  • Must be a principal / primary residence.
  • Only allowed on 1-unit properties.
  • You may not be employed by a family member or by any party involved in the mortgage transaction.
  • Borrower is qualified using only fixed based income (salary or hourly)
  • Your first day at the new position must be within 90 days of the closing date on your new home.
  • Additional documentation requirements apply. Ask me for details.

As an alternative, if a job change is required, consider a temporary living arrangement such as staying with family, friends or a temporary rental (such as an extended-stay hotel) so that you can begin your new job for 30 days prior to closing on a home.

Current Home Considerations

Own a home currently and wondering about how to go about buying another home for a relocation? See the topics below:

Wanting to keep your current home and turn it into an investment? Keep in mind your current mortgage (if one exists) would apply to your debt-to-income ratio used in qualifying. Plan ahead and consider finding a renter in advance that is willing to sign an advance rental / lease agreement. With an agreement, we may be able to apply 75% of your lease agreement(s) to offset your mortgage payment including principal, interest, property taxes, homeowner’s insurance and HOA dues.

Wanting to keep your home but not rent it out? Let’s have a talk to discuss your qualifying income at your new location and see if your current home obligations plus the new property are within debt-to-income range.

Keeping your home(s) but own it outright? Keep in mind we must apply all housing obligations towards your debt-to-income ratio. We will need a property tax statement, homeowner’s insurance statement and HOA statement for each property you own.

Selling your home? We can make arrangements so that within a week of closing on the sale of your home, you close on your purchase in another state. This will release your debt obligations of that prior property so it isn’t used in your debt-to-income ratio.

If selling your home in your plan, it is crucial you talk to me (or another lender) as early in the process as possible. For this scenario, I would prefer to have you fully underwritten and pre-approved for a new home purchase well in advance of you listing your current property with a real estate agent.

What is the First Steps to Begin a Mortgage for Relocation?

Consider taking my 60-second questionnaire first. Once your questionnaire is complete, we can either hop on a 20-minute call to discuss everything including having the opportunity to ask questions, or, you can begin a loan application to begin the mortgage process.

I’m looking forward to sharing my expertise with you and to answer any additional questions you may have. If you’d like to skip the questionnaire, head on over to my contact page where you’ll have access to direct ways to contact me and my team.

How Do I Learn More About Home Financing?

I’m so glad you asked! If you’ve found this relocation guide helpful, you will likely find value in my 20-page Ultimate Guide to a Home Purchase resource from my Mortgage Learning Center. These resources are full of excellent and useful information to help you on your homeownership journey.

It is my philosophy to teach, education and share my knowledge. If you are relocating, contact Scott Buehler today for more information about relocation mortgage loans and to get started with your loan.

Be sure to check out the mortgage learning center link above to see common FAQs that will help you navigate to the resources available on this website.

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