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Buying a house is hard enough, but it’s far more complicated when you’re crossing state lines. Here’s what to expect.
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Buying a house can be a long, hard process, even if you’re just moving down the street. But when you add the complications of an interstate move on top of the process, well, it’s going to get much harder.
That’s not to say it’s not doable. People do it every day (I’m in the middle of it as we speak). But it’s definitely going to be more expensive than a local move, so it’s important to know what to expect.
You earn a lot of frequent flyer miles
Of course, it seems obvious that you’re going to need to do at least a little traveling to your destination, especially if you’re going to make a six-figure home purchase. No matter how much travel you’ve already planned on, however, chances are that there’s going to be more travel than you thought.
For one thing, the houses in many areas are selling like proverbial hotcakes. If you’re in a fast-moving real estate market, the good houses could have multiple offers within days — or even hours — of hitting the market.
If you prefer to physically visit your potential future home before you put in an offer, this could mean you need to make multiple trips to your destination, probably on short notice. (It could be beneficial to get a small storage unit in your destination city, in which you can keep some personal items, like toiletries. This will reduce how much you need to pack on your subsequent trips.)
The travel doesn’t stop once you’re under contract. It’s highly recommended that you be physically present for the home inspection, which could mean another trip depending on the timing. (In fact, I’d argue that if you have to choose between being present for the showing or the inspection — go with the inspection.)
After the inspection, you can take a travel break while waiting on the appraisal and the title. You can even digitally sign a lot of the early contracts and applications. The closing is another matter. Plan to be required to show up at the closing so you can pay your closing costs and sign the formal documents in person.
The silver lining on all of this? Think of the miles you can earn with your trusty travel rewards credit card. (I got to explore a ton of interesting — and not-so-interesting — airport lounges.)
You may need in-state pay stubs
For many home buyers, a key part of making the purchase is the loan. Unfortunately, this is another task that can get harder when moving states.
In this case, it’s all about your income. The mortgage lender will need to know that your income won’t be adversely affected by your move. If you’re a remote worker or self-employed, you may get away with a letter confirming that your income isn’t location-dependent. Similarly, if you’re starting a new job, an offer letter could be enough for some lenders.
But a letter from your employer may not always be enough. Hourly workers, in particular, may have to jump through extra hoops to show they will have the same pay and hours. In the worst case, some banks may require that you provide one or two pay stubs from your new state to show an unchanged income level.
Ask your mortgage provider early in the process their rules on proof of income so you aren’t blindsided by qualifications that could throw you off track.
Don’t forget the moving costs
The entire horse and pony show of buying a house can be enough to make you lose sight of something just as important: Once you close on the house, you still need to move into it.
Moves, especially long-distance moves, are expensive. So don’t forget to keep your moving costs in mind while shopping for a house. Between the cost of travel, the closing costs, the down payments — your bank account can dwindle in a blink if you’re not careful.
Don’t let anyone tell you an interstate move is easy. It’s definitely not. But it’s not impossible, either. You just need to plan well — and well in advance — to ensure you’re not hit with unexpected complications.
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