Mortgage before I move to new city - no job lined up yet

Guest

Question:

I'm planning to move to a new city in a few months. I have the cash for a 20 - 30% down payment and would like to buy a house in this new city soon to take advantage of lower prices, make moving less stressfull etc. I'm currently renting, no debt, small car loan.

Would getting a mortgage be a problem if I don't currently have a job in this city? My current job is stable (state job) and I wouldn't move until I found a job obviously and I have more than enough income to pay for rent and mortgage.

thoughts?

parmoney · Joined: 05 Dec 2008 Posts: 37 11.32 Dollars($)

Unfortunately it would be a problem unless you bought it as an investment property, but then that would defeat the purpose of qualifying for the best rates, price, and etc.

Niicss · Posted: Tue Dec 09, 2008 1:59 am Post subject:

Hi TBE,

I think it will be difficult for you to get a loan but I don't think it will be impossible. You can speak to the lenders of the new city where you decide to get moved to. As you are ready to pay around 30% down, there can be some lenders who may agree to give you loan. However, it will be totally the lender's discretion.

Thanks.

Guest

Thank for the responses. I'll have to see what I can do. It does seem strange that they would care what I use the property for. As long as I can pay them back, what does it matter to them?

parmoney · Joined: 05 Dec 2008 Posts: 37 11.32 Dollars($)

It all boils down to risk.

When hard times befall us, we tend to cover the essentials first. For example, we would take care of where we live (rent, mortgage payment, utillities, food, and etc) and if any monies are left then you would disperse funds accordingly to your other obligations.

On side note, if you were to continue to work for the state in the new city, find out if they have a relocation program that might help you obtain the financing your looking for.

gmakerley · Posted: Mon Dec 15, 2008 9:22 am Post subject:

tbe, you won't be approved for a mortgage loan for any purpose if you don't have employment in the new area you're moving to.

interest rates are tied to occupancy. you'll pay less for a primary residence than you would for an investment property. lenders care what you're going to do with a property for precisely the reasons noted by parmoney. investors are more likely to let a property go than are homeowners when tough times hit. maybe not so much these days, but historically that is the case.

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