Borrowing and moving

Borrowing and moving

Some things in the  United States just do not work in the way that they used to, and this is particularly true with mobility.  The fact is that the great majority of people simply do not have just the one job throughout their lives, working for 30 of 40 years and then being able to retire on a nice comfy pension.  Today people take on new jobs probably every couple of years, often involving them having to move across town and in some cases even undergo relocation to the other side of the country.

If you are contemplating a transfer or have been hired by a different company for an entirely new job somewhere far away from your current location, there are a number of factors that you will need to take into account before you think about putting in an application for a new mortgage.

The simplest transfer of all is simply moving from one place to another with the same employer.  In these circumstances all that will have to happen for you be able to finance a new home in the new location will be for your lender to get a transfer letter from your employer that verifies that you are moving to a new job in a different part of the country and that you will be paid more or less the same amount of money as is currently the case.

If you are not just moving to a new place but are also working for a new employer, a few other items will need to be obtained by your lender.  One of these things will be an employment agreement or some other similar kind of contract that shows your new position, when the job is scheduled to begin, and your new rate of pay.  This form is very important indeed due to the fact that lenders normally want to see your most recent two pay checks stubs, covering a 30-day period, in order to verify your current level of income; however, if your new job’s start date and the closing date on your brand new home coincide, you will not be able to provide this and an employment contract is of crucial importance.  It can also be very helpful if you are going to be receiving higher pay than was previously the case in your new position, in which instance an employment agreement can actually help you to qualify.

A large number of households today have two incomes, of course, and in most cases both of the incomes will be required in order to qualify for a brand new mortgage.  If one borrower is transferred but their spouse has not yet obtained a new job, what do you do when you need both incomes to qualify? The answer is ‘trailing spouse’ income, which uses the spouse’s track record of previous employment, their intent to work in the new location, and the likelihood of finding employment in the same or a similar field, and is used to calculate income requirements.

Lance Grooms