Getting a Mortgage When You Are Relocating for a New Job

Changing jobs and buying a home at the same time used to sound like a mortgage red flag. For relocating buyers, it is completely normal. Lenders see it all the time, and there are well-worn ways to make it work.

Here is what I tell every buyer moving to Greater Lafayette for a new job, whether it is at Purdue, a local employer, or a remote role that brought them here.

The offer letter is your starting point

Many lenders can count income from a new job before your first paycheck, as long as the offer letter is signed, the salary is clear, and the start date is close enough to your closing date. Each loan program and lender sets its own rules on how close that has to be.

So the first question for any lender is simple: what exactly do you need from my offer letter, and how far ahead of my start date can I close? Get the answer in writing if you can.

A few things can complicate an offer letter:

• Contingencies, such as a background check or a visa that is not final yet.
• Pay that depends on commission, bonuses, or grants.
• A big change in career type, or a move from salary to self-employment.

None of those stop a purchase. They just mean your lender will ask more questions, so bring them up early.

Get pre-approved before you tour

For a relocating buyer, pre-approval is not optional. It tells you your real budget, it tells sellers you are serious, and it surfaces problems while there is still time to fix them.

A pre-qualification based on a quick conversation is not the same thing. I explained the difference in pre-approval vs pre-qualification. When you are buying from a distance, you want the stronger letter.

Compare more than one lender

Every lender is required to give you a standard Loan Estimate after you apply. The Consumer Financial Protection Bureau designed that form so you can compare offers side by side, and recommends getting more than one before you choose.

When you compare, look past the rate. Look at lender fees, how quickly they answer the phone, and whether they have closed relocation loans before. A lender who is slow to respond can cost you a house in a competitive moment.

Also ask about rate locks. If your closing date is tied to a job start that might shift, you want to know how long your lock lasts and what an extension costs. My guide to mortgage rate locks covers the details.

Plan for your relocation money

Relocation benefits are helpful, but they rarely arrive in time to help at closing. Many employers pay moving allowances through payroll after you start, and those payments are often taxable income.

Ask your employer two questions early. When will the money arrive? Is it a lump sum or a reimbursement? Then ask your lender whether any of it can count toward your down payment or closing costs. Usually it cannot, which means your cash to close needs to come from somewhere else.

Speaking of cash to close, Indiana buyers should plan for lender fees, title charges, prepaid taxes and insurance, and a few other items. I broke those down in closing costs in Indiana.

Timing around your old home

If you are selling a home somewhere else, your lender needs to know right away. They will look at whether you can carry both payments, or whether your purchase depends on that sale closing first.

• Selling first gives you the cleanest financing, but may mean a short rental here.
• Buying first may require qualifying for both payments, or using a bridge loan.
• Keeping your old home as a rental can work, but lenders have rules for counting rent as income.

There is no single right answer. Pick the one that matches your timeline and your comfort with risk.

Questions to ask a lender before you apply

A quick phone call with a few lenders tells you a lot. These are the questions I suggest relocating buyers ask.

• How close to my start date can I close using my offer letter?
• Will you need to speak with my new employer, and when?
• How do you handle a bonus, commission, or grant-funded salary?
• Can I sign closing documents remotely if I am still out of state?
• What is your typical turnaround from contract to clear to close?
• Who is my point of contact, and how do I reach them after hours?

The answers help you compare lenders on more than price. When you are buying from a distance, a responsive lender who explains things clearly is worth a lot.

If your start date moves

Start dates shift. A lab renovation runs late, a visa takes longer, or a department pushes onboarding by a few weeks. If your loan depends on that start date, tell your lender the moment it changes.

Depending on the loan, they may need an updated offer letter, a short extension on your rate lock, or a change to your closing date. Handled early, these are routine. Discovered the week of closing, they can cause real problems.

It also helps to build a few weeks of cushion between your closing date and your start date from the beginning. That gives everyone room to adjust if something slips.

What not to do between pre-approval and closing

A job change already puts your file under a microscope. Do not add to it. Avoid opening new credit, financing furniture, moving large sums between accounts without a paper trail, or making a big purchase before closing.

And tell your lender immediately if anything changes with the new job, including the start date. Surprises at the end are much harder to fix than updates in the middle. I keep a full list in what not to do before closing.

Closing from out of state

You do not have to be in Indiana to close. Many relocating buyers sign remotely or by mail with a notary where they live. Your lender and title company will tell you which documents need a wet signature and how long shipping takes.

The federal rules also help with timing. The CFPB notes that you receive your Closing Disclosure at least three business days before closing, so you have time to compare it to your Loan Estimate and ask questions before you sign.

Where local knowledge comes in

Your lender handles the money. What your lender cannot tell you is whether a home is priced in line with what similar homes on that street have actually sold for, or whether the house you love has been sitting because buyers keep walking away after the inspection.

You can find listings anywhere, but that local knowledge, not access to listings, is what actually protects you. A great loan on an overpriced house is still an overpriced house.

Through Buy & Move Smart, our buyer program, we line up your numbers, your must-haves, and your tours so the financing and the house come together on the same timeline. If you are relocating for a new job, grab a time on my calendar and we will talk through your dates. No pressure either way. Let's get you home.