Moving out of state and buying first house?

[natfrac]

I agree with renting in a new area for awhile. We did this on our last move, even though the city wasn't completely unfamiliar to us. But figuring out mass transit and best driving routes to avoid traffic was only something we could do while living there.

 

[lost*in*cyberspace]

dont rent whatever you do.its dead money


Posted from DISboards.com App for Android

Not at all!

Tell this to the millions of home owners who are now upside down on their home mortgages!

Home ownership is not for everyone. Often renting is the financially sound choice.

 

[Jenny3]

I would suggest finding a short term rental while you get used to your new place and find good paying jobs. Perhaps one that will allow month-to-month. You could even look into furnished and put your belongings into storage so you're not moving twice.

 

[SAT887]

While I don't think renting for the long term is good idea... When we move we will rent for a few reasons.

1) the change in areas was far more different than we anticipated. We moved from NJ to NH and people, climate etc is more than what we want.

2) work, the dynamic has changed with the market and the opportunities would have been easier if we moved to a different location.

3) We miss family and a more urban way of life - more than we anticipated.

4) while the housing market is rebounding its still not easy to sell a house in many areas...


We want to move to NC when my DH can get a lateral or promotional job transfer. We plan on renting until we see how things are in the area. We do have a family vacation to "scout" out a few areas, and also to judge the proximity to our family. Lots of research is helping us but first hand knowledge will help us make a choice. Hopefully we it's the right one, regardless we will live with it.

My family when I was a teen we moved from NJ to FL... We lasted 8 months and moved back to NJ.... My dad lost a lot if money and never recouped it.

I guess with whatever choice you make, proceed with caution! Good luck!

 

[melifeld]

You can totally do this. First, figure out where you are going and how much you will be making. If you have several months before you move, try to make a trip or 2 for house hunting. You will need a local mortgage broker where you are moving. Speak to the broker before making a trip out for house hunting. If you qualify, they should be able get you approved before you start the new position.

This is what we did when we moved to NC in August. My husband is in academia, so we knew in March that we would be moving in August. We had plenty of time to find a realtor, get approved for the mortgage, then go on a house hunting trip. Then we came back again for closing, and moved 2 weeks later. There were limitations on us for how far ahead of starting the new job we could close. If I remember correctly, we could not close more than 3 weeks before starting the new job.

The key is to do your research. Know which area you think you want to be in. This will help when finding both a realtor and getting approved for the mortgage. For us, we based it on schools, proximity to work for DH, and type of home we were looking for.

People move and change jobs all the time, and they buy homes in the new area before their official arrival. Mortgage brokers know how to deal with this.

 

[lost*in*cyberspace]

You can totally do this. First, figure out where you are going and how much you will be making. If you have several months before you move, try to make a trip or 2 for house hunting. You will need a local mortgage broker where you are moving. Speak to the broker before making a trip out for house hunting. If you qualify, they should be able get you approved before you start the new position.....

Your advice is fine for people who have a firm job in the place where they plan to move. If you read OP's post, she and her husband don't have jobs where they are moving. They aren't going to be approved for a mortgage if they aren't employed.

 

[taaren]

OP, I am in the middle of doing the process you describe right now. We lived in Hawaii until January, had previously lived in Northern California until 6 years ago. I applied for jobs in California for over a year after completing my graduate degree, finally got a great one last month.

We own a home here about 10 minutes from where the job I got is, had bought it in 2008 with the intention of living in it eventually and renting it out in the meantime. However, now that we're here we would like to buy a home, and leave the tenants in the house we own since they're paying substantially more than the mortgage, and we have the down payment available to buy a smaller house that we could live in for a few years and save some money until these tenants decide to move on their own. Currently I'm staying with friends while looking for homes and DH is wrapping up life in Hawaii.

The bank is fine approving us for a loan with my offer letter and new pay stubs, since I'm in the same industry I was in in my last state with equivalent pay (and I work for the government, which helps). It probably also helps that this bank bought the mortgage on the investment property we own and can see that it has been solvent. We are running into a bit of trouble with what they call "seasoning" the money for the down payment which means you have to have the money in your account for several months to prove its not a loan, and we are currently in the process of liquidating investment funds for the down payment and have to prove where all the money came from before we make an offer. (We can get prequalified, just not approved without seasoning the money.)

The other problem we are running into is that it is a very tight market for buyers right now. There's only one available home in our price range in our desired neighborhood, when 5 years ago we looked at over 60 to select the one we bought in our price range. Homes are going into contract with multiple offers within days of being listed, so if we see one we like we have to be prepared to see it and put an offer in on it, and I have yet to see one I like (have been looking in other neighborhoods, none are appealing). All this means its is unlikely I'll find something, and be able to close on it before my DH and DS get here in May. I had previously thought that 3.5 months would be enough time for me to get settled into my new job, find a home, and have it prepared for them. Since you're also coming from one of the non-contiguous states, know that just getting your stuff, acquiring/shipping the cars, re-doing insurance, etc, etc, etc, is exhausting and time-consuming all on its own.

So, we're resigning ourselves to the fact that we'll have to lose our great tenants and move into the home we own which we love and bought because we want to live in. We are working with a deadline though, since we want the DS to be in a certain school district we are familiar with since we lived in this area before he was born. Over the next year we'll keep hunting and probably buy another home as an investment property.

Between lending laws and the tight market and low interest rates, landing and buying a home is tough right now, especially when you come from far away. Not sure if my story will help you any, but perhaps it'll give you some insight into what you're trying to accomplish. Good luck!

If you want to get a house when you land, you'll need to have a job offer in hand, a substantial 'seasoned' down payment (offers with FHA loans are apparently not being accepted buy sellers right now since they have multiple offers in many places), and it will still probably take at least 1-2 months to close. Plan on being forced to rent for at least a month or two, possibly up to a year if you want to find the right house in the right neighborhood for you.

 

[AK_Christina]

Thanks for all the responses. We absolutely will not move until both of us have attained jobs, even if that means someone moving down before hand. I have family in the area to stay with in the interim. Thanks again for all the notes!