Wanting to purchase a home in another state but have a mortgage in current state. Is this possible?

[Anonymous]

I have purchased my first home in WI and closed on this home in Feb 2018. I am looking to relocate for a few reasons to Dallas area. Is this at all possible? Am I required to sell my current home before I apply for a new mortgage? Do I find a local lender in Dallas area to view my credit, or do I ask my current mortgage lender? 

[kc0039]

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@Anonymous wrote:

I have purchased my first home in WI and closed on this home in Feb 2018. I am looking to relocate for a few reasons to Dallas area. Is this at all possible? Am I required to sell my current home before I apply for a new mortgage? Do I find a local lender in Dallas area to view my credit, or do I ask my current mortgage lender? 

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Some lenders are licensed in all 50 states. The pre-approval letter will state that you need to sell your home first before buying a new one. This will all depend on your income and current debts

[ShanetheMortgageMan]

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@Anonymous wrote:

I have purchased my first home in WI and closed on this home in Feb 2018. I am looking to relocate for a few reasons to Dallas area. Is this at all possible? Am I required to sell my current home before I apply for a new mortgage? Do I find a local lender in Dallas area to view my credit, or do I ask my current mortgage lender? 

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If your income (along with any rental income) can qualify for both your current mortgage + your new mortgage then you shouldn't need to sell your existing home before you'd be able to buy a new home. 

When you purchased your Wisconsin home, there was verbiage in the security instrument that you agreed to which said you would occupy the home for the first year of the mortgage.  The lender you'd be applying with to purchase your home in TX will (should) also be aware of that verbiage and will ask you to write a letter of explanation on why you purchased a home in Wisconsin shortly before you are looking to buy a new primary residence in TX.  As long as the explanation makes sense then it's likely to be permitted.

If you liked your loan officer who helped you purchase your WI home then I'd go back to them and ask if they can also do loans in TX.  If so, then you've likely found your loan officer for your new transaction.

See Info Needed To Determine If You Can Qualify For A Mortgage for additional info that will be asked about.

[JVille]

Wisconsin to Texas.... my first thought is are you changing employers? Or being transferred with your current employer. Either way you income in Texas will need to be addressed.

[homeloanexpert]

First, you are not required to sell your current home if you decide to relocate. As stated prior, depending on what type of loan you used,  there are some stipulations with regards to occupancy. There are a number of valid reasons to relocate,  the oblivious one being employment.  Here is an interesting fact I am sure you didn't know. There is a good chance you used a Mortgage Broker or Lender to obtain financing for your home. With that comes some risk for the Loan Officer/Lender with regards to an EPO (early pay off).

If a lender sells the servicing rights to your loan to another bank or investor, they are on the hook for first 6 months. Meaning if a borrower sells, refinances, or pays off the mortgage during the first 6 months, we have to pay back our LO commission, any profit the lender made, plus a penalty. Ouch! Well in this case, the LO is out of the woods on this one. I do recommend calling your prior LO and run this by them and see what wisdom they can offer you.

It is possible to relocate and use your rental income from the departing property to help you offset your mortgage and make qualifying for a new mortgage easier. Make sure you speak with an experienced LO so you know all the facts. If you do decide to move to Dallas, let me be first to say, "Welcome to Texas!" The economy is booming here!

Best wishes!

[Anonymous]

My current loan is a conventional loan. I already called and verified I have no contract stating I need to occupy the residency for a certain amount of time. I am self-employed and have been for 6+years with income at 90k a year and credit score in the mid 700’s. I am not wanting to rent out my current home-have known too many people and their horror stories of renters. No one can clean and be organized as much as me lol! I really appreciate your advice and will reach out to my LO and get some more advice on the potential relocation. I’m tired of WI winters and love Dallas!

[pinkandgrey]

First off, I agree about renters. I hear only terrible things about them LOL. Second, congrats on the move to TX. Great people in that state. As for your mortgage situation, I'm not sure what you're asking. Are you looking to take on a second mortgage for the new house? Of course that's always possible. Are you looking to sell your WI home first? Also an option. Talk to a banker in person if necessary. 

[Anonymous]

My question is really where to begin the process. I do plan reaching out to my loan officer come Monday but my worry is will he be put off in me wanting to relocate being I just purchased my first home this year? Also, would I be able to begin the steps into qualifying for a new mortgage in TX prior to selling my current home? I have no doubt my current home will sell as I put a lot of renovations into it just wanted to know if this needs to sell first before I begin getting another mortgage? Hope I’m making sense