Buying House In Different State Due To Job Transfer
This BLOG On Buying House In Different State Due To Job Transfer Was UPDATED On March 12th, 2019
Relocation for Employees that own a home and want to purchase a new home in the new location.
Buying House In Different State is one of the many benefits and perks many employees are offering valuable employees when they are in need of experienced personnel in other parts of the country. To incentive its employees to move from one location to another, many businesses often offer higher pay, a possible promotion or on the other end of the scale – unemployment. Many times these employers offer relocation packages that can contain many items of value that are often overlooked including helping employees with buying house in different state. Make sure to read the relocation offer completely before signing as some parts may be able to be negotiated.
Agreement With Employer When Buying House In Different State
Employees should thoroughly review the relocation agreement with their employer when Buying Housing In Different State.
Here are some of the highlights that a Relocation agreement can contain:
- Agreements to buy-out current home and advance some or all of the equity to accelerate your ability to purchase a home in the new location
- On the home selling side, expenses covered could include the Realtor commissions and/or sellers’ normal selling expenses
- On the home buying side, expenses covered could include normal mortgage closing costs plus mortgage points and/or fees to “buy” new interest rate lower on new home purchase
- Details of what personal items will be moved for you and by whom
- Other expenses that may be covered such as:
- Day care
- Automobile transportation
- A shopping trip or two
- Additional travel expense for the employee and family
Having Two FHA Loans At Same Time
Under HUD Guidelines, the parent of FHA, home buyers can have two FHA Home Loans at the same time only if they are relocating to an area that is 100 miles and it is due to relocation. Those with a current FHA Loan on an exiting property can qualify for a second FHA Loan if they are buying house in different state. It does need to be due job relocation.
Costs Of Moving When Buying House In Different State
Additionally, Businesses often give you a list of vendors that will help with the relocation process. Movers, Realtors and Mortgage Lenders love the relocation business as it is often a steady stream of business of well qualified consumers, who often are not as concerned with the cost of the move as they could be and can leave money on the table.
- If relocation package says it will cover the mortgage lenders normal costs and points on home purchase, and you only consider the preferred vendors (not that there is anything wrong with their list – I’m sure they are all reputable lenders), you may receive a final “rate” that is higher than what you could find by going outside the list
- This is important since the rate, determines the payment, which is your expense, not your companies
- My advice is to share relocation package with more than a couple lenders and ask “Here is my relocation package, given this, what rate would I receive?”
- Of course lenders will want to know credit score and approximate purchase details prior to giving you a quote but most will give you a tight range for which you can compare
Good luck with your move and may moving to warmer climates with less traffic, better schools and winning professional sports teams!
About The Author: Owen Raun
Owen Raun is Vice President of City Bank Mortgage and is based in Houston, Texas Owen Raun and his team are experts in helping home buyers buying house in different state. Owen is also a contributing editor and consultant for Gustan Cho Associates Mortgage News. Owen Raun and his team represent an FDIC Bank so they are authorized to do business in all 50 states. Owen Raun has little to no mortgage overlays on government and conventional loans. Our viewers who have questions in buying home in different state or qualifying for a second home purchase without selling the first home, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at firstname.lastname@example.org.