This weekend, I met with a nice couple from Florida who are considering moving to Tucson. I’ve met them before, we got together a couple years ago when they visited to check out the area. Now, with their youngest child graduating high school, they are seriously considering making the move to the Desert Southwest.
We looked at several pieces of real estate in Northwestern Tucson, discussed the varying styles, views, and amenities of several neighborhoods, and generally agreed that if they decide to move here, we can find them a home that they will love in Tucson.
Finding the right home is probably the least important aspect of making the move to Tucson, or to anywhere new, really.
One huge consideration is that they don’t have jobs lined up here. Surely, they are highly employable, but they have no offers, have not even begun to look for a job here. This affects the type of financing that they can get.
Because they would be moving across the country, the lender cannot consider their income that they made back home in Florida. To get a loan here, in Tucson, without a job in Tucson, those folks would have to get a “stated income” loan, or “no documentation” loan. These types of loans typically come with a higher interest rate, which means payment-oriented buyers have less buying power.
Back in Florida, my buyers easily qualify for the $400,000 range, while they can only buy a house around $250,000 here.
Luckily, we can find acceptable homes in their price range. Because they did the smart thing and talked to a local lender first, we were able to answer their housing questions, look at areas and homes that they could afford, and make them much more comfortable with the big move across the country.
Step One? Talk to a local lender.
Just as houses and markets are vastly different from state to state, so are lenders and lending practices. Changes in jobs and incomes, not to mention changes in cost of living, can have a huge impact on what type of home you want to buy.
Thinking about relocating? Start with a good real estate agent and get their lender recommendations. Make yourself comfortable with financing a home in a new area by calling local lenders and see what kind of financing is available to you.
Photo via Flickr, Courtesy of Paul-W
September 26th, 2007 at 9:06 am
[...] first big step in relocating is figuring out your finances. I wrote in this post about a couple who are moving and will find new jobs when they get here. Since their jobs [...]