When relocating to a new city, securing a mortgage can feel like one more daunting task on an already full to-do list. However, with proper planning and the right steps, the process can be smoother than you might expect. Whether you’re moving for a new job, to be closer to family, or just for a fresh start, getting a mortgage doesn’t have to be complicated. Let’s dive into some tips that can make your mortgage move stress-free.

Get Pre-Approved with a Lender First

One of the first things you should do when relocating is to get pre-approved by a lender. You don’t need to be physically present in your new state to start this process. Gather your financial documents, including your W2s or 1099s, pay stubs, and bank statements, and submit them to a lender licensed in your new state. If you’ve already accepted a new job, include your offer letter or employment contract as well.

Pre-approval gives you a clear picture of what you can afford and helps avoid any surprises down the road. Many lenders offer online and mobile platforms that allow you to complete the process without even stepping into an office. With pre-approval in hand, you can start house hunting with confidence.

Emphasis on Employment

When applying for a mortgage, especially while relocating, steady employment plays a significant role. Lenders typically like to see at least two years of stable work history. If you’re simply transferring your current job to a new location or working remotely, this won’t pose any issues. However, if you’re starting a new job, there are a few things to keep in mind.

Getting a Mortgage with a New Job

If your new job is within the same field, lenders usually won’t have concerns as long as it doesn’t negatively impact your income. For example, moving from a marketing position in one company to a similar role in another won’t raise red flags, especially if your income remains stable or increases. A signed offer letter or employment contract can often be used as proof of income in place of pay stubs.

However, if you’re transitioning into a new career field, or taking time to job hunt, lenders will dig deeper into your future employment plans. In such cases, having a solid savings cushion is essential to cover living expenses while you build employment history. Additionally, if you’re relocating with a spouse or partner who has stable employment, they can act as a co-borrower to increase your chances of loan approval.

Don’t forget to consider the cost of living in your new area. A new job may pay more, but housing costs in your new city could also be higher. Be sure to study up on your new market to understand what you can comfortably afford.

Military Moves

Active-duty military members have unique benefits when it comes to home buying. If you’re relocating due to military orders, you likely already have the employment stability needed for mortgage approval. A VA loan offers incredible advantages, including no down payment requirements, making it easier to buy a home. Plus, relocation assistance programs (RAP) offered by your branch can help cover moving costs and other expenses.

For retired military members, VA loan benefits still apply even if you’re relocating. However, lenders will want to see your retirement income or new employment details to complete the mortgage process.

In Conclusion

Relocating can feel like a whirlwind of change, but with the right approach, getting a mortgage doesn’t have to add to the stress. By getting pre-approved, understanding how your job situation affects your loan options, and tapping into resources like VA loans for military personnel, you can simplify the process and focus on settling into your new home. Ready to take the next step? Reach out to Scott and the Smolen Team for guidance on securing a mortgage and making your move a success!