MORTGAGE MATTERS

3 min read

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Apr 2023

How to Get a Mortgage When Relocating

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WHAT YOU'LL LEARN

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When to get pre-approved (hint: do this first!)

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How to document your employment

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Tips for military relocations

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WHAT YOU'LL LEARN

Checkmark

When to get pre-approved (hint: do this first!)

Checkmark

How to document your employment

Checkmark

Tips for military relocations

Whether it’s for a new job, family changes, or just a fresh start, buying a home in a new city can be exciting – and challenging. Moving your family and belongings is stressful, but getting a mortgage, even in another state, doesn’t have to be! Check out our tips below on how to make the “mortgage move.”

Get Pre-Approved with a Lender First

You don’t need to move to your new state before you apply for your mortgage. So as always, the best thing to do when buying a home is to gather your most recent W2s or 1099s, paystubs, and bank statements, as well as any offer letter or contract from your new job and get pre-approved first with a lender that is licensed in your new state. You don’t even need to meet with your lender in person; you can get pre-approved on your phone! A pre-approval means you’ll know exactly what you can afford – and no one needs unpleasant surprises when relocating, right?

Also, Atlantic Bay’s Fast Track Buyer Advantage program can get you a pre-approval even before you’ve found a home!

Emphasis on Employment

When relocating, your job is probably the biggest piece of the mortgage puzzle. Lenders always consider stable employment, preferably for at least two years, as a factor in loan approval. If you’re transferring your current job, or you work from home but are moving to a less-expensive area with the same job, no problem! But what if you’re embarking on a new adventure?

Getting a Mortgage with a New Job

Suppose you're changing jobs within the same field. In that case, that switch shouldn't affect your ability to qualify as long as it doesn't negatively impact your income. For example, a nurse moving from a Tennessee hospital system to an Idaho system is fine. Better yet, a signed offer letter from your new employer can serve as proof of income.

Now let’s say you’re changing to a whole new field – nurse to teacher, for example – or need some time to look for a new job after your move. That’s OK, too – but your lender will dive deeper into your employment plans, and you’ll need savings to lean on while establishing yourself in your new city. You may need to rent for awhile to build up your employment history. If you still want to buy a home, and you’re relocating with a spouse or partner with a steady income, that person can be a co-borrowerAn additional borrower whose income, assets, and credit history are used to help the primary borrower qualify for a loan.co-borrowerAn additional borrower whose income, assets, and credit history are used to help the primary borrower qualify for a loan..

Finally, remember that not all salaries are alike. Study up on the cost of living in your new locale to see how much house your expected salary can get in the new market. You might get more bang for your buck!

If you're relocating with a spouse or partner with a steady income, that person can be a co-borrower.

Military Moves

If you’re an active duty military member (thank you for your service!) and relocating to your own new home, you’ve already got the employment box checked – great! A VA loan comes with no down payment, and your branch will offer relocation assistance programs (RAP) such as per diems, counseling, and moving help for you and your family.

If you’re retired from the military and buying in a new area, your lender will still need your new employment or retirement income for approval. However, the VA loan’s great benefits are still all yours, including no loan limits with full entitlement.

Selling a Home While Relocating

Already own a home and want to sell to purchase in a new location? Here’s the good news: You already know the ups and downs of the homebuying experience – and you realize it doesn’t always go perfectly. While simultaneously buying and selling can be challenging, you can navigate it smoothly with some patience and help from the right lender and agents.

One tip: avoid buying a new home before your current home sells. You don’t want to have two mortgages (plus electricity payments and gas bills…) while adjusting to a new city or job and building a new social network.

Atlantic Bay is ready to help with mortgages here, there, and everywhere. Just give us a call!

Frequently Asked Questions

Chances are, if you're wondering about it, someone else has too. Here are answers to some of the questions we hear most often.

Can I apply for a mortgage before I move to a new state?
Yes, you generally do not need to be living in your new state to apply for a mortgage there. You can start the pre-approval process before your move, which helps you understand what you may qualify for and gives you a clearer picture of your budget in your new market. Atlantic Bay can work with you remotely, so the process does not require an in-person meeting.
How does starting a new job affect my mortgage application?
Lenders typically look for stable employment history, often around two years, as part of the approval process. If you are transferring within the same field or employer, that generally does not create an issue. If you are changing careers or starting a new position, a signed offer letter from your new employer may be used as documentation of income. Your mortgage banker can help you understand what documentation may be needed based on your specific situation.
What documents do I need when getting a mortgage while relocating?
You will typically need recent W-2s or 1099s, recent pay stubs, bank statements, and any documentation related to your new employment, such as an offer letter or transfer agreement. If you are self-employed or your income has changed due to the move, your mortgage banker may request additional documentation. Gathering these items early in the process can help things move more smoothly.
Are VA loans available when relocating for military service?
Yes, VA loans are generally available to eligible active duty servicemembers and veterans regardless of where they are relocating. VA loans may offer benefits such as no down payment requirement and no private mortgage insurance. Your branch may also offer relocation assistance programs that can help with the transition. Your mortgage banker can walk you through the VA loan process and what may be available based on your service status.
What happens if I need to sell my current home and buy a new one at the same time?
Buying and selling simultaneously is one of the more complex parts of relocating, but it is manageable with the right planning. In general, it is advisable to avoid purchasing a new home before your current home sells, since carrying two mortgages at once can be financially stressful, especially during a move. Working with an experienced mortgage banker and real estate agent who understand relocation timelines can help you coordinate the process.
Does the cost of living in my new city affect how much house I can afford?
It can, yes. The same salary may go further in some markets than others, and lenders consider your income relative to your debt obligations rather than local living costs. Researching the cost of living in your new area before you start searching can help you set realistic expectations for your homebuying budget. Your mortgage banker can help you get pre-approved based on your financial profile so you know your range before you start touring homes.
Can a co-borrower help me qualify for a mortgage during a relocation?
Yes, adding a co-borrower, such as a spouse or partner with stable income, may help strengthen your application during a period when your own employment situation is in transition. The co-borrower's income, assets, and credit history are factored into the loan qualification process. This option may be particularly helpful if you are between jobs or starting a new position with limited income history in your new location.

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The views and statements expressed are deemed reliable as of the publish date indicated and may not be accurate or reliable at any future date. The views and statements provided are those of the author. Discussions regarding any financial information provided are not intended as individual recommendations and do not reflect the views or advice of Atlantic Bay Mortgage Group, L.L.C. The views expressed are subject to change at any time in response to changing circumstances in the market. *For refinances, the total finance charges may be higher over the life of the loan. Atlantic Bay Mortgage Group, L.L.C. disclaims any obligation to publicly update or revise any views expressed or information given. Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend. Atlantic Bay Mortgage Group, L.L.C. NMLS #72043 (nmlsconsumeraccess.org) is an Equal Housing Lender. Located at 600 Lynnhaven Parkway Suite 100 Virginia Beach, VA 23452.