Relocation Mortgages

Relocation Mortgage

     When relocating, it's important to get a loan that works for you, from a lender that understands what you're dealing with.  While there is no specific 'relocation mortgage' loan that's a perfect one-size-fits-all, working with a lender that understands your needs, and has products and guidelines that allow flexibility is paramount to saving you from headaches throughout the loan process.

     Relocation can happen for many reasons - the most common being job opportunity, but some folks relocate for other reasons (I relocated myself from DE to CA for no reason other than sunshine).  When relocating, there are often a lot of stresses in someone's life (to go along with excitement), from separation from a spouse and children if one member of the family has to move in advance for work, selling a home, moving your entire life a long distance, finding new schools, and trying to learn the nuances of a new state or region (what do you mean you don't have scapple on your breakfast menu!?).  On top of all that, getting a mortgage should not be another stress.

     If relocating for a job, chances are you're going to need to get a loan based on a job offer letter and an income stream that isn't currently hitting your bank account.  This is perfectly fine, although you'd better be sure the lender you're using has a program that allows for it.  Our agency direct program underwrites according to agency (Fannie Mae/Freddie Mac/Ginnie Mae) guidelines, so regardless of whether your loan is conventional or FHA, we can use future income to qualify you for a mortgage without any paystubs.  

     Another question to ask when relocating, if you have a home to sell after you move, is whether your new lender/investor allows for any payment changes based on a large lump sum payment.  For example, let's say your current home isn't sold before you buy your new home, so your loan amount is $400,000.  When you sell your home, you'll realize $100,000 in profit.  Some investors will allow you to make that $100,000 payment, and will then recalculate, or re-amortize, your payments based on the $300,000 left, rather than having to refinance.  This is case by case, and loans are often sold between investors, so it's something to ask up front and keep in mind if you find yourself in this scenario.

     If your move is temporary and will only last a few years, or you're not sure if it'll be long term, shorter term mortgage planning may be in line - ARM loans can be a great idea for someone that'll be in their home for 12 years or less, and a loan with a slightly higher interest rate to offset closing costs could be a great idea to save money long term.  It takes conversation and considerations to determine which loan program will save a relocating buyer the most money, and many of those conversations won't happen when working with a lender that's not familiar with relocating clientele.

     Another area where a lender familiar with relocation is a plus is when it comes to informing you of local customs.  Many local lenders take for granted that there is an entire world outside of their state with a different set of rules.  For example, for people moving to CA, we often need to explain "Closing escrow" VS "settlement", that 'impounds' in CA are the same thing as 'escrow' in other states, and we need to answer the question "what the heck is an escrow officer?".  In DE, we often need to explain that an attorney is required and the attorney's office will act as the title agent.  The percentage of transfer taxes, what different fees are in different states, and the people involved in a transaction all vary greatly from state to state.  A lender that's familiar with relocating clients are in a unique position to ensure there's no confusion, and can explain differences clearly so a buyer understands their transaction, regardless of how foreign local verbiage may seem.

     One major consideration when relocating is any relocation package that may be offered through an employer - sometimes, there will be stipulations on which lender, Realtor, or other professional service may be used - it's important to understand the benefits, and then shop them around to see what the best option is.  Many employers offer relo packages to their employees as a convenience, but it doesn't necessarily mean the services offered are the best, or the cheapest.  Sometimes employers allow flexibility in choosing the professionals you want to help you as well, and will simply offer a dollar amount to help with expenses, up to a certain amount.  It is very important to understand any relocation benefits before reaching out to other professionals for help, so you can get a fair comparison and make the best decision for you & your family.

     In large part, a new mortgage when relocating is a similar process to a mortgage when staying local, however the lending professional you'll work with when relocating should know the unique challenges relocating represents, which questions to ask, and they should also have resources available to you in the area you're headed.  They should also offer a fully automated, do-it-on-your-time loan process that allows you to handle all of the other things you have going on, while signing loan paperwork electronically within a time frame that works for you.  

     If you're relocating to CA, DE, FL, PA, or NJ, I can offer all of the above and then some.  Mason McDuffie is a licensed lender in those 5 states, and also operates in CO, GA, HI, ID, MD, MT, NV, NC, OR, SC, TN, TX, VA, WA, and WV.  If you need help in any of those states, I can direct you to another professional that's familiar with relocation and can offer a similar level of service.