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Tips For Home Buying In Another State

Sammamish Mortgage
Published:
July 27, 2021
Last updated:
July 27, 2021
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In This Article

Purchasing a home in another state might seem like a tricky process at first. But the good news is that with proper preparation, it doesn’t have to be a challenge.

Buying a home out of state is fairly common since there are a whole host of reasons why buyers might be looking to purchase a home in another state, like a new employment opportunity or a much-needed change of scenery. Nevertheless, house hunting in a new locale does add a few more layers to the homebuying process. 

A prime example of this is when it comes to moving, which tends to require additional planning, communication, logistics, and costs. Moreover, familiarizing yourself with your new state’s real estate laws is another layer that comes with buying a home in another state. That said, you can uncomplicate your out-of-state home purchase in a few steps and with the help of the following tips/suggestions.

How Do You Buy A House Out Of State?

If you’re thinking about moving to another part of the country, then a quick overview of the entire process of buying a house in another state might help. Similar to the in-state home buying process, you will need to do your research—whether online, in-person, or both. During your research stage, it may be beneficial for you to network with people in your desired area, contact a relocation specialist, and of course, look for local mortgage and real estate experts.

Once you’ve got a feel for your future home state, it’s highly recommended that you assemble a team of sorts, have a realistic plan, narrow down your options to your potential lenders, and find the right agents (real estate and buyer’s). After doing so, next, it is time to get your finances together(start saving, establish a housing budget, review credit, factor in travel expenses and moving costs, etc.).

Here, getting pre-approved is a must, especially since you will need to consider the cost of living in your new state. That said, getting a pre-approval in another state might be slightly harder, especially for first-time buyers. But that doesn’t mean it’s impossible; instead, it just may mean you need to save a larger down payment or show additional income and credit verification information.

After you’ve evaluated your financial situation, shopped for a loan, and been pre-approved for a mortgage, then you can start looking for the right neighborhood and homes that meet your needs, wants, and overall budget. Subsequently, the homebuying process tends to follow a familiar pattern—find your dream home, make an offer, get a home inspection and appraisal, do the final walkthrough, secure homeowner’s insurance, and close the deal.

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Tips For Home Buying In Another State

In order to have the entire home buying process run smoothly in another state, there are a few tips and suggestions worth noting. As mentioned above, doing your research cannot be stressed enough. But the more thorough your research is, and the sooner you start, the easier purchasing a home out of state will be. Other important things to keep in mind here are as follows:

  • Go easy on your credit
  • Put technology to work
  • Be picky when it comes to choosing your real estate agent or realtor
  • Seriously consider a relocation specialist or expert
  • Hire the right moving company, and don’t forget to make a moving checklist
  • If you’re not relocating for work/being transferred, expect to show intent and income details
  • Be wary of scammers
  • Don’t be afraid to ask any and all questions
  • Get a second opinion
  • Visit before you buy, if possible
  • Make the inspection
  • Opt for a remote closing if it makes things easier

You may also want to consider working with a title company that has a national network, so you can be sure it operates in both your current state and your new state.

Making A Home Purchase In Another State

When it comes to securing financing for your out-of-state home purchase, qualifying for a mortgage in another state can be as simple as finding the right lender or mortgage company licensed in that state. 

But in order to get the best rates and expert assistance, you should still look at several lending institutions before making your final decision. Ultimately, shopping lenders is also the best way to save money on your mortgage.

Also, there are certain caveats to keep in mind when you are looking for a primary residence or a second home in another state. For instance, you don’t need to move to the new state before applying for the mortgage for a primary residence, as long as you plan to move into the property when your loan closes. Alternatively, you do not need to move to the new state for a second home or occupy the property after closing, but your mortgage terms might be more expensive.

Lastly, if you’re selling a house while closing on a home in another state, it is important to keep in mind that most lending institutions prefer confirmation of the sale of your existing home before funding a concurrent home purchase. Obviously, perfectly timing both closings can be tricky, especially at a distance, but it’s possible with the right assistance.

Overall, these are just a few things to keep in mind when buying a home in another state. That said, if you would like to learn more about making a home purchase out of state, then don’t hesitate to contact a local mortgage professional for further information.

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Ready To Purchase A Home In Another State?

Do you have questions about home loans or making a home purchase out of state? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.

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