Obtaining a mortgage when relocating out of state might be a complex undertaking. Many of the things you have to consider for getting a mortgage when you’re relocating are the same as for any other mortgage.

Getting a mortgage when relocating to a new state or changing employment can be pretty simple if you understand the process and carefully plan.

If you’re considering moving to a new state check out some of our tips below!

Research and Referrals

It can be tough to get to know a new place from afar, especially one in another state, but there are various ways to do it.

Visit the City’s Website

Visit each area’s webpage if you know what city you’ll be going to or if you have a list of the places you’re interested in.

Checking out the city’s website is a great way to discover information on the city’s services, facilities, and parks for residents, parks and recreation activities, numerous services provided to citizens, and city statutes and ordinances.

Read or Watch Local News

It’s always a good idea to start reading news stories online to learn about upcoming events and other activities, hear about new businesses cropping up, and even learn more about local drama or crime.

Learning about the city from the local news helps you determine whether the town is the ideal fit for you and your family.

Have a Look at Google Maps

Use Google Maps to determine the distance between your new house and schools, hospitals, grocery stores, parks, restaurants, and other points of interest.

Look up the names of the closest schools, businesses, and spaces once you have them, and do your homework on each one, so you know which to choose and which to avoid.

Look through their websites and read customer reviews. Then, consider taking a look at their social media pages to see how they connect with their customers.

Get a Referral

Picking a buyer’s agent at random is not a good idea. Instead, please speak with a trusted real estate agent in your present neighborhood and ask them to suggest you to a buyer’s agent in the new area.

Realtors (National Association of Realtors members) have access to databases that list agents in different communities based on their success rates. You can be sure you’ll get an experienced buyer’s agent if you get a referral.

Consider a Relocation Specialist

The job of a relocation specialist is to make the moving process as painless as possible. They may assist you with the practicalities of the relocation, such as:

• Finding a moving company, shipping service, and storage facility
• Planning travel for you and your family
• Enrolling your children in school or daycare
• Managing contract work for your new house
• Finding local service providers

If you don’t want to pay for every service, you can frequently request free relocation materials or brochures.

While the information won’t be as personalized, it will still give you some insight and address any relocation questions you might have as you start to narrow down your options.

Many employers provide relocation packages to cover moving expenses for employees moving from out of state and sometimes include a relocation professional.

If your new employer cannot provide you with one, you can locate relocation experts by searching for “relocation experts” and the ZIP code or name of the city closest to your new location.

Request a Real-Time Tour

If you cannot attend every showing in person, request a virtual tour of each home that fulfills your criteria from your real estate agent.

A virtual tour is a comprehensive walk-through of a property that allows you to see each room, the landscaping, and the home’s exterior as if you were there.

Request a virtual tour of the area and neighboring amenities from your realtor once you’ve narrowed down your options.

Solicit an Inspection

A thorough inspection is a critical step in purchasing a home, but it’s crucial for an out-of-state homebuyer. A home inspection will show you the major and minor issues with a home before the purchase is complete.

Home inspectors check for:

1. Proper drainage
2. Evidence of standing water
3. Whether window frames show signs of decay
4. Good condition of the foundation
5. Significant cracks in walls or ceilings
6. Functioning electrical, plumbing, and HVAC

Inspectors vary in ability and experience, so be sure to research a trusted and reliable home inspector to meet your needs.

Consider asking your inspector if you can actively follow their inspection via video call. This can provide an added sense of security for your out-of-state purchase.

Find the Right Out of State Mortgage Lender

The process of obtaining a mortgage for your new home involves several persons and stages.

Before packaging your application, your loan officer will need to gather all necessary information about your income, credit history, debt ratios, and savings.

After you’ve completed your application, an underwriter will assess it, who will look over each component.

It’s essential to find the right out-of-state mortgage lender, so the entire process moves along smoothly.

Choose a mortgage lender with licenses in multiple states, has a high business rating, and provides access to various mortgages.

A and N Mortgage has in-house underwriting that can help speed up out-of-state moves. In-house underwriting can save a lot of time.

The entire mortgage underwriting process is more effective when everyone works together under one roof.

Instead of passing your file on to an anonymous underwriter, your loan officer can keep track of it.

After dealing with the same underwriter, the loan officer will know what to look for and how to present all facts for the applicant’s best chance of success.

Additional read: The Advantages of In-House Underwriting

Verify the Lender’s State License

The lender you choose should be familiar with the closing process in multiple states. Make sure you check their license online to see if they are approved for the state you’re interested in. that’s particularly important if your lender is not a national bank or credit union.

Nonbank mortgage lenders—which include organizations that offer their services entirely online—issue more mortgages than other options. These businesses may specialize in mortgage loans only, or they may offer a variety of loans in addition to mortgages.

Some of the country’s largest online mortgage companies have established their reputations on speedy loan turnaround. Working with one of these lenders has one advantage: speed.

Nonbank lenders may also be more willing to work with you than a traditional bank if your credit history has some blemishes or you require a non-conventional loan, such as an FHA loan.

However, it’s essential to verify their state license before proceeding.

Choose Online Convenience

There may be quite a few bumps in the way when buying a house out of state, so it’s vital to communicate smoothly with the lenders.

Look for a lender that offers an online mortgage application portal and is responsive to emails. It’s important to know that your questions are answered promptly because this establishes trust.

When you’re ready to make an offer on a house in today’s fast-paced world, you can do so via email or using a real estate company’s online proposal tool.

While signed paper copies will eventually be required by insured overnight mail, an e-offer with a digital signature will suffice to close the contract until the paper copies arrive.

Close on Your Existing Home

Many people prefer to sell their current home before buying a new one. This allows you to have the funds of the sale in hand when looking for your dream home, reducing the financial stress of the situation.

The advantages of closing on your existing home are:

• Avoid juggling two mortgage payments and closing costs
• Not having to maintain two residences
• Easier to budget for because it’s straightforward and uncomplicated

There are numerous benefits to purchasing your new house before selling your old one, mainly when it comes to making the transition easier.

If you know you’ll need to be in a new city by a specific date for a new job, buying first can ensure you’ll have a place to live by that date.

You may take your time, relocate your possessions to the new location on your schedule, and avoid living in limbo while your old house is being sold. Buying first is a good option if you’re on a tight deadline.

Purchasing your new home first necessitates significant financial resources. It might be overwhelming, especially if you have a limited budget or resources.

You’ll have a new mortgage payment in addition to your current one, as well as closing charges, your down payment, moving expenses, and upkeep and maintenance on both properties.

Additional read: 10 Things to Know as a First Time Home Buyer

Out-of-State Mortgages with A and N

Purchasing a home in a different state may require a few more steps and more flexibility. After all, you want to find a property you like from afar while still figuring out the logistics of your relocation.

Although technology is useful, nothing compares to the efforts of friends, family, new relocation specialists, a knowledgeable real estate agent, and a trusted mortgage provider.

Are you ready to start looking for a home? Begin the home-buying process today with A and N Mortgage.

A and N Mortgage Services Inc, a mortgage banker in Chicago, IL provides you with high-quality home loan programs, including FHA home loans, tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial tool.