If you are one of the millions of Americans that move each year, you are not alone. Today’s mobile society means that more people than ever before are relocating for better career opportunities. Buying a home in the new location can be challenging, especially when you are under tight deadlines. Relocation mortgage programs will help you to make the transition a smooth one.
What is a Relocation Mortgage?
A relocation mortgage is a special mortgage program for professionals who are moving to accommodate an employer’s needs. In many cases, the time frame for the move is shortened due to the urgency of the situation. Whereas it typically takes several months to sell one home and buy another, the relocation mortgage process is expedited.
How Relocation Mortgage Programs Differ from Traditional Loans
In a relocation mortgage, the process is designed around the employee who is moving to accommodate his employer. This means that the process is shortened, making it easier and more affordable. The sponsoring company often throws in incentives and bonuses for the buyer to make the process more attractive. In some cases, employers will pay the closing costs and transaction fees on relocation mortgages.
If you are purchasing with a co-buyer, such as a spouse, relocation mortgages come with an added advantage. In many cases, your lender will count 100% of the co-borrower’s income when making a determination of your borrowing power. This is a huge advantage over traditional loan programs that often count only a percentage of the co-borrower’s income.
Benefits of Relocation Mortgage Programs
Banks often go the extra mile to assist relocating buyers. Companies are often brand loyal and will use the same bank for all of their corporate moves. The bank, in turn, will offer perks such as guaranteed on-time closings, direct billing and simplified pre-approvals to get you in your new home faster.
Types of Relocation Loans Available
There are several types of loans available for those who are relocating to a new city. Conventional loans that require a 20% down payment are still the standard, and most borrowers find themselves taking out these loans. Relocation mortgage programs also offer FHA and VA loans, jumbo loans and other programs to make the move easier.
In some cases, relocation mortgage programs carry with them discounted interest rates, making these homes even more affordable. These programs are available across the United States and often have dedicated relocation specialists that make the process go smoothly.
Steps to Getting a Relocation Mortgage
The first step in getting a relocation mortgage is to get a pre-approval from the bank. During the pre-approval process, the lending specialist will review your credit and income profile and approve you for a set limit for your loan. This letter will set you apart as a serious buyer and help you in home buying negotiations.
Buying a home in one city while living in another can be a challenge. Relocation mortgage programs often offer a network of real estate agents who can work with you to find your new home. Because most lenders who offer relocation mortgages have a dedicated relocation specialist that can help you to choose the right home for your lifestyle.
Relocation mortgage programs are designed with the busy professional in mind, and can provide added assistance for those that need to move for work. With hands-on support, expedited closings and discounted fees, there are tons of resources available to help you with your move.
If you are considering relocating for your career, there are many programs that will help you get into the right home and make the process as simple as possible.