PenFed question

[Tenzin]

I’m a potential first time home buyer. I’m still learning about the mortgage process and all the rules that are involved. I am a remote worker and my wife is a teacher. I currently live in South Florida and I am looking to purchase primarily in the Orlando Central Florida(2-3 hours away) area and secondary in the Port St. Lucie(1 hours) area. I have applied with several lenders and have been preapproved without issues. 

Yesterday I applied for a preapproval with PenFed. The loan officer told me that he cannot preapprove me without a job offer letter for my wife from the area that I’m moving to. She’s not quitting her current job. Does this makes sense? This is the first lender I have heard this from.

[MortgageMama]

Fannie/Freddie don't really have a policy regarding commuting distance. However, an underwriter would likely request a letter of explanation as to how the commute is reasonable and wouldn't affect the stability of her income.

[VAMortgageGuy]

Unless you qualify on your own,  PenFed is the only lender that did their job.

Occupancy fraud is a major issue in mortgage lending so underwriters will be skeptical of your wife living 2 hours away from where she works.

The bad news is you wouldn't "find out" about the issue until your file hits an underwriter's desk and that typically doesn't happen until you've paid for inspections and your appraisal. That means you're at risk of not only having your loan denied but you're also out the money you paid for inspections and your earnest money could be at risk.

[ShanetheMortgageMan]

Sounds like you are in the West Palm Beach area.  There was a real estate agent who lived there and made significant contributions to the mortgage forums here, wish she was around to chime in on the commute.  I know commuting to/from Port St. Lucie happens as I've had clients who've done that, but I was talking with a friend in Satellite Beach and they said to Orlando is almost unheard of.  If you desire to be in Orlando then your wife will very likely need employment within a reasonable commute or you'll need to move there to rent for awhile (months?  the amount of time will depend on the undewriter you get) which would show she's willing to make the 2-3 hour commute to her current job.