5 mortgage tips when moving to another state

While you may have a real estate agent friend or family member to help guide you in your home state, be aware that they may not be able to help you purchase a home in another state. Real estate agents and mortgage loan officers can only operate in the specific states they are licensed to do business in, and licensing requirements can vary from state to state. Since Guild Mortgage is licensed in 49 states, you can start your consultation with the loan officer you already have a relationship with, and even if they aren’t licensed in the state you want to move to, they can connect you to another loan officer in our network so you can enjoy the same national loan programs offered by Guild as well as other local programs your new state offers.

They may also be able to refer you to a local real estate agent and relocation services to help you manage the experience with ease and confidence.

Local Down Payment Assistance (DPA) programs also vary from state to state. These programs can provide financial help for down payments and closing costs, making homeownership more accessible to qualified borrowers. Depending on where you choose to move to, you may find DPA programs available at the state, county, municipal area, or even at the neighborhood level. At Guild, our local loan officers are familiar with down payment assistance programs for both first-time and repeat homebuyers, including several specialty DPA programs that are only available to our customers.

Timing out-of-state moves can be tricky, so if you need to buy a new home before selling your current one, a Bridge loan can help bridge the financial gap between the two transactions, easing the burden. A bridge loan uses the equity in your current home to cover the down payment for the next one, removing the contingency to sell your current one first. Bridge loans aren’t available everywhere, and must be repaid in 6 months, so talk to your local loan officer on your eligibility if you’re considering one.

One popular reason for relocating to another state is to avoid the higher housing prices found in certain metro areas. Increasingly, first-time buyers and even existing homeowners are moving out of high-cost cities and moving to more affordable rural areas. If this is your motivation, a USDA rural development loan may be a good financing option. In addition to offering competitive interest rates, these loans sometimes require no down payment. Not sure what qualifies as “rural”? You may be surprised to learn what suburban areas are eligible for USDA rural development loans. You can check the area’s eligibility status on the USDA property eligibility map to determine if the place you’re interested in may qualify. The USDA rural housing loan areas are updated annually.

If you have been through the homebuying process before, you may remember that lenders typically look for a consistent work history in the same job and predictable ongoing income when evaluating loan applications. Switching jobs or shifting to self-employment during the loan process or moving to a new state without securing a new job beforehand, can affect your mortgage application and potentially derail the loan approval process. So, what does this mean for people who relocate for work?

If you want to buy a home before starting your new job, there are strategies that can help you to qualify for a mortgage. Typically, as long as you begin your new job within 60-90 days of closing (depending on the loan type), you may still qualify for a mortgage. To do so, you’ll need to provide a non-contingent offer letter or contract as well as the proof of funds to cover mortgage payments after closing or your start date.

Your Guild loan officer can provide guidance and help you navigate any potential challenges related to your job situation. Be ready to provide information that will verify your income and outline your finances to help keep the process on track.

When budgeting for your new home, property taxes are a crucial factor to consider. They can significantly impact affordability and influence your choice of location. This is especially important when moving to another state, as property tax rates can vary widely across different areas, even within the same state. Typically, urban areas have higher median property taxes. Keep in mind that choosing a neighborhood near your preferred area, but with lower property taxes, could open more home choices and lower mortgage payments, too. This interactive map of nationwide property tax rates is a helpful tool.

Knowing local laws and regulations is also essential when making a move as they can vary greatly. For example, zoning regulations can affect your property value, future expansions or renovations to your new home. And environmental regulations may impact your insurance premium, hamper landscape planning or restrict outdoor activities. While you can check local government websites for this information, working with a local lender and real estate agent can also get you the insider-info you need to make an informed decision on where you want to live.

Before you start packing boxes, make sure you have all the information you need to make a smart move to a new state. Check out our blog on moving tips for your relocation and reach out to a loan officer at Guild when you’re ready to research your loan options. They’ll be your guide, offering expert loan advice and local tips to help you navigate the process and secure the perfect home in your new hometown.