Any lending/mortgage peeps here?

[P man]

Say I was planning on moving to another state. My wife's job would be a straight transfer. I had planned to keep my current job and stay behind until I found a job in the other state.

I want to buy a house but my lender says me staying behind could be a red flag and there is a possibility they would deny the loan. I can get a written document showing I would live with relatives rent free while I job hunt.

Is this the norm? I figured as long as we showed income buying a house would be no big deal?

 

[Apparition]

@Mrs.Apparition

 

[P man]

@Mrs.Apparition

Mrs App is a banker/lender?

 

[Apparition]

Mrs App is a banker/lender?

Deals with mortgages works for a bank

 

[Zorba]

One word: BANKS. You poor bastard.

 

[P man]

One word: BANKS. You poor bastard.

I wish there were other options

 

[Apparition]

One word: BANKS. You poor bastard.

He'll likely be less of a poor bastard once he moves off the left coast.

 

[Granite]

I’m not a lender but depending on how long you plan to be “straddling” states like that, you might consider leasing out your current home. You could take tenants while you continue to live there (AKA house hacking) and they could stay and pay after you relocate. The bank will look at your debt to equity ratio and all income vs liabilities so the lease agreement income could help offset your liabilities like the mortgage. Puts you in a better position to house hunt (and mortgage hunt) in the new spot. You could house hack that too if you have trouble getting the loan you need.
Alternate approach - sell the current house before getting financing for a new one, so you (hopefully) have cash to reduce the loan amount and improve your terms. If you have a new job and a few months of paychecks before you get a loan on a new place maybe this all goes away. Good luck!

 

[CreepinDeth]

Say I was planning on moving to another state.

I want to buy a house but my lender says me staying behind could be a red flag and there is a possibility they would deny the loan.

Several flags may be considered

Keep in mind you BOTH changing jobs is a factor in lending. To afford 2 houses your debt to income has to be in the green.

“Tenant income” cant be counted for 2 years if you decide to rent, so its a liability for 2 years still against your debt to income

My wife was my loan officer when we met

 

[Zorba]

I wish there were other options

Try a Credit Union. They're "usually" easier to deal with. I haven't done business with a damn BANK in 30+ years.

 

[tworley]

Several flags may be considered

Keep in mind you BOTH changing jobs is a factor in lending.

When we bought the house we're currently in, I was in my current job for less than a year. My wife was a bit longer (maybe 3 or 4 years). Our lender had told us that as long as the new(er) job is in the same work or career field, its considered industry experience and they still treat it as consistent and stable income. I was also told that same thing by another lender when I bought a vehicle years ago. I am sure that varies though from lender to lender.

 

[freedom_in_4low]

Why is it their business? As far as I'm concerned, you're both moving and you're "traveling for work" while you're hanging back job hunting.

But...here's some of my experience that may relate to your concerns.

When I moved from OK to CO, my wife didn't work so mine was the only job, and since it was in the same field as my previous 9 year position, they accepted my new offer letter and previous job paychecks as proof of income. I got my old OK job back while I was still up there, bought another house to move into 3 months after starting a job for a company in Oklahoma. They may have asked a question or two about it but I don't remember it being a big deal in either case.

 

[P man]

Why is it their business? As far as I'm concerned, you're both moving and you're "traveling for work" while you're hanging back job hunting.

But...here's some of my experience that may relate to your concerns.

When I moved from OK to CO, my wife didn't work so mine was the only job, and since it was in the same field as my previous 9 year position, they accepted my new offer letter and previous job paychecks as proof of income. I got my old OK job back while I was still up there, bought another house to move into 3 months after starting a job for a company in Oklahoma. They may have asked a question or two about it but I don't remember it being a big deal in either case.

I would imagine it's their business since they are lending me money and they want to insure they will get paid.

My lender is saying the loan could possibly go through but there would be possible red flags near the end of the process that could halt the loan. I would possibly lose any earnest money.

 

[P man]

Not really related but I also learned that a pier and block foundation is somewhat common in Texas!!!! The only times I have seen that used around here is for trailers or maybe manufactured homes..I learn something every day

 

[freedom_in_4low]

I would imagine it's their business since they are lending me money and they want to insure they will get paid.

My lender is saying the loan could possibly go through but there would be possible red flags near the end of the process that could halt the loan. I would possibly lose any earnest money.

I guess I would ask why the rush...if you're gonna stay in WA while you job hunt anyway, why not find a job in your destination city first, and then move? You might luck out with a job that pays for the relocation, and even if not, you might be less tempted to take a job you're not that excited about, just to get the process over with. And instead of feeling pressure to buy right when you move, you could rent for a year and get a feel for the town and where in it you want to live, how a different life style might change your needs in a house in ways you might not predict right now, etc.

 

[freedom_in_4low]

Not really related but I also learned that a pier and block foundation is somewhat common in Texas!!!! The only times I have seen that used around here is for trailers or maybe manufactured homes..I learn something every day

Is this in new construction or homes built before a specific time? Most everything here is a poured footing, stem wall and slab on grade and has been for a couple of decades. Don't see many houses with a crawlspace built after 1980.

 

[P man]

I guess I would ask why the rush...if you're gonna stay in WA while you job hunt anyway, why not find a job in your destination city first, and then move? You might luck out with a job that pays for the relocation, and even if not, you might be less tempted to take a job you're not that excited about, just to get the process over with. And instead of feeling pressure to buy right when you move, you could rent for a year and get a feel for the town and where in it you want to live, how a different life style might change your needs in a house in ways you might not predict right now, etc.

All good advice, thank you

 

[P man]

Is this in new construction or homes built before a specific time? Most everything here is a poured footing, stem wall and slab on grade and has been for a couple of decades. Don't see many houses with a crawlspace built after 1980.

The particular one I was looking at was a home that was a few years old.

 

[steelhd]

Why is it their business?

Because its their money and he asked to borrow some of it.

 

[freedom_in_4low]

Because its their money and he asked to borrow some of it.

I get that but there are different ways to frame a situation that sound more or less sketchy, and a less sketchy framing may not sound significant enough to the loan officer for them to think the underwriters need to know.

I've gotten mortgages in close proximity to job changes before and the thing that they always seem most concerned about is making sure I'm not borrowing elsewhere for my down payment.