Buying a home in one state while living in another state is challenging but not impossible. The key issue is the continuation of your employment. First, lenders want you to be employed when you apply for a mortgage. Second, if you intend to move from one state to another, lenders want to understand if there will be a break in your employment. Ideally, your current job allows you to transfer from one state to another without a break in your employment. If you intend to change jobs, it is best if you already have a new job lined up in the state you intend to move to before you apply for a mortgage. If you can show lenders documents that verify continuation of your current job or your new job you should be in a much better position to apply for a mortgage. We provide a comprehensive overview of mortgage qualification requirements including employment history, credit score and debt-to-income ratio on FREEandCLEAR.
The other issue that lenders will focus on is when you intend to move into the property in the new state. If you do not intend to move into the property for several months then lenders will consider this a second home or non-owner occupied property. In either case, lenders will likely require you to make a down payment of 20% of the property purchase price and you may not be eligible for certain mortgage programs such as the VA Home Loan Program because the property is not your primary residence. The better scenario is for you to have a shorter time frame for moving into the property in the new state. That way, your mortgage will be classified as owner occupied and you can qualify for more low or no down payment mortgage programs.
After you have reviewed the resources on FREEandCLEAR, we recommend that you contact multiple lenders in the state you intend to move to to understand how they would handle your unique situation. You can review lenders in any state by clicking INTEREST RATES and selecting the state from the State drop down in the "Refine Your Search" menu on the page. We advise you to contact at least four lenders as qualification guidelines vary. Plus, comparing lenders is the best way to save money on your mortgage.