how to buy a house out of state

Jenny & Justin were lucky enough to see a bunch of homes, find the one and make an offer, all in just one day! They credit their ZipRealty agent with knowing what they wanted and being super-organized, so that they didn’t waste any time looking at homes that weren’t going to work out.

REALTOR®, realtor.com®, the spherical icon of a house within a circular map, the “WHERE HOME HAPPENS” tagline and stylized logo treatments including any one or more of the foregoing are trademarks of the NATIONAL ASSOCIATION OF REALTORS® and are used with its permission.
If you can’t get this kind of referral, you can also find local a REALTOR® online to help you buy a home in another state.
Start by visiting homes you or your REALTOR® find online to narrow down your choices before you buy a home in another state.
A REALTOR® in your area can help you come up with a timeline, sell your home and possibly refer you to a qualified REALTOR® in your new home state.
Whether you’re relocating to another state for work or always dreamed of moving when you retired, you’re going to need somewhere to live.
An out-of-state buyer may be at a disadvantage because the buyer may not know the best neighborhoods, the agents in town or the state laws.
If you have friends or family in the other state, ask them for information on the local neighborhoods.
You may not have time to travel between your home and another state as often as you would like to see a property, but that doesn’t mean you can’t tour homes.
“In your absence, the real estate agent will be your lifeline, so it’s important to be able to trust and communicate well with whomever you choose.
If you haven’t already, you’ll also need to list your current home with a real estate agent in your area.
Either way, it’s important to find a real estate agent that both knows the area and understands your needs.
“I don’t want to set you up to make a trip here before you’re in a position to actually do something,” said Chaplain.
Your current house should be on the market in January, according to Greg Chaplain, licensed agent at The Real Estate Group, LLC.
As you near the end of your new home search, it’s crucial to travel to see the property (or properties) you and your real estate agent have selected.
“You don’t want to take the trip in January if you don’t plan to move until June,” said Chaplain.
As a military buyer using your VA loan benefit, it’s imperative that you select an agent who specializes in VA loans,” said Reeves.
In the months before the trip, your real estate agent will be helping you narrow down the options with pictures and videos, as well as phone and video-conference calls.
Since you can’t be physically present for the entire home search, the list will act as a guide for the real estate agent as he or she walks through any potential prospects for you.
You’ll have to be extra specific when giving the real estate agent a list of preferences for your new home.
Even the most experienced and trusted real estate agents can’t possibly convey every little detail, so you’ll want to see for yourself before you purchase a property.
Ask your lender to recommend a real estate agent – one who has been through an out-of-state sale before, if possible.
While you might be able to do it all yourself for a simple move up the street or to the next city over, it may be best to enlist the help of professional movers when moving to a different state.
While there’s no real way to predict how long the sale will take, it’s a good idea to start taking offers for your current home before you start making offers on a new one.
Narrow your choices down by areas that have the lowest crime rates, best school systems and lowest unemployment rate to create a final list of homes with good value and high potential investment or resale potential.
Most real estate companies say you should always buy in areas in which you are familiar, and you should visit the house before purchasing the property.
Research property taxes and zoning laws to ensure that you can afford the taxes and that the potential use of the property is allowed if you’re considering it as an investment property.
Evaluate all potential costs of purchasing the home before making an offer, including possible investments in upgrading the home, repairing or replacing appliances, closing and insurance costs.
Review home inspection reports and note anything that may be called into negotiations during the offer and acceptance period, such as termite damage or out-of-date wiring that may need to be replaced before the purchase is confirmed.
Working with a bank that does business in both states — the one you live in now and the one where you’re buying a new house — might help the lending process flow more smoothly, although many local banks and credit unions lend money for out-of-state purchases.
It takes a bit more planning and preparation; thorough research helps you pick your top property choices and see them all during a single trip to the new state, rather than having to go back several times to find the right house.
 I don’t live in Lubbock, but I’m guessing they might have 3-4% appreciation over the past few years….so you need to be in the house 3-4 years to break even at that rate.
 I called someone at Chase Bank and they suggested that we get preapproved now with our employment but the mortgage would be for a vacation home loan rather than a traditional owner-occupied home and could purchase the out of state home.
In your case it is best to purchase the home while you both are employed as a 2nd home and with your good credit there will be a very small difference in the rate (nothing to write home about) unless you wait until you and your wife have arrived in town and found a job and have 30 days pay stub to prove employment.
 We have been saving for the last several years and have about $100,000 in savings that we were planning to use to purchase a home in cash.
 So I feel that we would traditionally qualify for a mortgage the problem is that we don’t currently have employment in Lubbock.
Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out.
If you simply can’t afford to buy a place where you live or if doing so would require investing the majority of your money in real estate and you’d rather diversify your investments, you may want to look at other cities where market fundamentals are sound but property costs are significantly lower.
Investing in out of state property might seem appealing if you live in an area where real estate is expensive.
You’ll need good contacts in the area to make your investment plan successful, but when dealing with a distant city, you may be starting from scratch in finding quality professionals such as real estate agents, property managers and handymen – the people who will be the key to your success or failure.
If you don’t think you want to buy property where you live for whatever reason, there are other ways to get into the real estate market that are much simpler than investing out of state.
If you lived in the area, you might choose to manage the property yourself, but if you live far away, professional property management is an extra expense you simply must incur to safeguard your investment.
Purchase prices, appreciation rates, mortgage expenses (if any), taxes, housing regulations, rental market conditions and more are all factors that might be more favorable in another state and will contribute to a property’s potential ROI.
Also, when purchasing rental property, especially rental property out of state, you’re likely to encounter higher homeowners insurance rates, higher mortgage interest rates and higher down payment requirements because lenders will consider you a riskier borrower than an owner-occupant.
For example, if you lived in Las Vegas, the city with the highest rate during the housing bust, you might have wanted to buy property in a market where median sales prices remained relatively stable, like Charlotte, North Carolina.
When considering all of these factors, you may find that being an owner-occupant or purchasing investment property at home is a much simpler and less expensive proposition than purchasing out of state.
Online information on a property can be out of date, and a local real estate agent or property owner who isn’t looking out for your best interests might lie to you to close a sale.
While you’re narrowing down the areas you’re interested in, it’s also a good idea to get preapproved for a mortgage with a lender that is familiar with Relocation loans or with real estate transactions in the state you’re interested in.
Second, ask your new real estate agent to provide school reports, maps and any other information that can help you narrow down the neighborhoods you’re interested in.
In our situation, we made sure we gave as much notice as possible so that our agent could start talking to builders of possible inventory homes (we decided we wanted to try to get a newly-built home) and possible deals and incentives.
If you’re looking at resale homes, your agent will be able to see what’s available out there and try to schedule appointments to view homes.
On our first trip, which was only two days long, our agent had arranged separate folders for each day, including listing and builder information… in the order we were going to see them! Yes, I was very impressed with her organization skills, AND grateful, to say the least.
From hiring the right agent to using technology to your advantage, here are four ways to make the buying out of state process headache free.
the one im currently going after she actually whent 3 different times ot the house, one she got pictures, another she took a movie of the property and then whent back with the inspector and got more pictures…these little things may seem silly but having a good idea of what your going out there to look at is a huge help.
Probably your best bet is to find a job in Texas, move and rent there for awhile, figure out where you want to buy then work with a lender and agent to find a home.
get yourself a GOOD agent…buying a house long distance is alot of telephone and email tag…having an agent wholl happily do alot of the footwork for you is key.
you would have to get a conventional loan with atleast 20% down if you don’t plan on moving in within 1 month after closing, because all other loans that I know with less than 10% down required you to move in with a month or two and live there for atleast 12months.
There are firms out there that will help income property investors find the right property, will make sure the tenants are there, will manage the property for the life of the investment, and will even assure rental income for a given period of time.
Two it works out best if you do not need to work a 40 hr job.Nothing like working all day and spending your time off repairing somebodys elses problem.(for free) Rental property is a good way to stor cash.
If you want to create an income immediately, you’ll need to rent your property.
when potential tenants are interested and filling up rental application just ask them additionally “Are you sure you are able to handle the rent amount and it will be ready for me on the 1st of every month?” Make sure to execute that.
The key to successful landlording is keeping your property in tip top condition to be able to ask a higher than average rent and attract the best renters and screening, screening, screening prospective tenants.
Don’t even consider a property management business unless you’re sure that you can pay for repairs.
contact a financial advisor and consultant for your financial matters and since your sister is there instruct her to find a good estate agent that is reputable who can help you find a house of your needs and dreams in arizona.
Time Management and help from some very good estate agent can be really very essential and helpful.So far as loan is concerned, you financial advisor can be helpful for you and your estate agent can help you find the appropriate home in a perfet place.
If you need any other advice please contact me and I can recommend a wonderful lender that is very familiar with first time loans and the programs available to you.
The first thing is to contact a mortgage lender to decided on what loan program works for you and to make sure the monthly payment is where you want it to be.
Often times guidelines, down payment requirements and programs change, so it is a good idea to establish a relationship now with a loan officer, so he/she can keep you up to date on industry changes.
The first order of business would be to speak with a lender to see what programs you qualify for so that you are looking in the right price range.
That would be important if you want to consider a lease purchase, as you don't want to commit to buying the house at a later date, if you won't be eligible to purchase for a very long period of time.
Also the program is for Maine Residents, so you may want to check on whether you had to be a resident for some period of time prior to buying the home.
If the Maine Housing Program is anything similar to the State of Washington's then there will be a list of "approved" lenders who work with that program.
You would normally submit a lease purchase offer through your Maine Real Estate Buyer's Agent.
P.S. If the house is vacant, maybe you can get a Lease Purchase that allows you to move your family into the house, and then closes 6 to 12 months later when you qualify for a mortgage.
While we all don’t have the option of only moving to our dream location due to jobs and other life events, you can make yourself more familiar with an area prior to buying a home.
Moving and buying a home out of state can be a highly stressful time, but if you have the right tools, you can definitely make the process easier.
If you are moving for business, ask your new boss if he or she has any insight into where to find a great realtor.
How do you find a great home, and trust that it is a great home, when you live hundreds of miles away? The unknowing can be unnerving, but that doesn’t mean that buying a new home in a new location has to be an overwhelmingly nightmare.
Asking your potential neighbors is a great way to get some inside information, but actually spending time in the area you may be buying a home in is ultimately the best way to go.
Either choose a lender that has branches all over the country or choose one established in the state in which you are planning on moving.
My husband and I own a small moving company and we have customers asking us for tips all the time on relocation topics of all kinds.
Moving out of state is difficult, and buying a home out of state can be even more stressful.
A great realtor should be able to listen to your needs and find you not just one home, but several options, that fit your criteria and locational needs.
A good realtor can be your best friend when moving to a new state.
This entry was posted in Long Distance Moving and tagged long distance moving, Moving And Storage, moving out of state advice.
Before giving a lender your business, however, be sure to shop around, read reviews, and ask any locals for great recommendations so that you are getting the best service possible.
He or she will also be able to give you great specifics about neighborhoods and schools, and will gladly work with you remotely, sending you emails and MLS listings even while you are states away so that your time together is much more productive.
Then you’ll need to build up your cash reserve, and, if you plan on renting out the property, determine how much you can expect from rental income (it’s often not enough to cover your monthly costs).
Second-home owners need to worry about both property taxes (which vary by state and locality) and, if renting out the place, income tax.
You may need to purchase title insurance — typically required by the lender — in case problems such as past ownership or debt claims on the property surface after the purchase.
Thinking about buying a second home? Whether you’re looking for an investment property, a getaway, or a place to eventually retire, plan to take these seven important steps.
One unique way to help finance your second home is to tap the "Bank of Family and Friends." Borrowing from parents, siblings, or close friends lets you keep the tens of thousands of dollars in interest you’ll pay over the life of your mortgage loan within your circle, rather than handing it over to a bank.
Your lender will also require that you carry hazard insurance, to protect your property against damage from such causes as theft, fire, flooding, or windstorms.
You’ll want to tally up your likely expenses, factoring in any extra costs based on the fact that you won’t be there every day (such as hiring a management company and the relatively high cost of hazard insurance).
Look into factors like the strength of the local economy, trends in house resale values, convenience and amenities, rates, the quality of local schools and medical care, and more.
For step-by-step information on how to make the purchase of your second home a success, see Buying a Second Home: Income, Getaway or Retirement, by Craig Venezia (Nolo).
Whether or not you consider yourself an investor, you no doubt want your second house purchase to be a sound financial move.
One thing I see too much of is these “turnkey” properties look great on paper but in reality they are in horrible areas and sold to out of state investors who don’t understand the local market.
South Florida like the Miami area has seen huge increases in property values and the focus seems to have shifted to mid Florida for cash flowing rental properties.
Many investors also want to diversify their rental property portfolio by investing in out-of-state rental properties.
Having said that, the economists, turn-key companies and hedge funds spend a lot of money researching where to invest and what areas will provide the best returns.
A few years ago hedge funds like Blackstone and Colony Capital started buying thousands of properties that they turned into rental properties.
The Austin area is great but getting a rental property to cash flow is tough.
The most popular locations for the hedge funds were Southern California, Phoenix, Las Vegas, Atlanta, Southern Florida and other large metro areas.
I have done a lot of research on turn-key rental property providers and I wrote an article on the basics of turn-key investing here.
Of course, these turn-key investors and hedge funds make for incredibly stiff competition from a small time investor’s standpoint (such as mine).
Here is a great article on how many homes the hedge funds have bought in Tampa Bay and how their buying has decreased recently.
The buyer’s real estate agent can daily email new listings and price reductions to the buyer directly from MLS.
An out-of-state buyer may be at a disadvantage because the buyer may not know the best neighborhoods, any of the real estate agents in town or the state laws.
The reason is most banks will not fund a loan for the home a buyer is buying in another state until the bank receives the HUD on the sale of the buyer’s existing home.
Many buyers are referred by family, friends or co-workers to a buyer’s agent.
If the buyer is interested in more information, the buyer can email the agent.
If a buyer is selling an existing home to buy a home in another state, a simultaneous closing is very difficult, if not impossible, to orchestrate.

Tags: , ,