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How far would lender consider as maximum commute from job to home I want to buy? My question pertains only to this issue, not all of the other factors that are considered in a mortgage loan.
I am looking in a town 66.4 miles from my job (approx. 1 hour and 8 minutes). I can buy a home in that city for 140K - 150K vs. the 200K I would need here. I am certain I would not even qualify for 200K based on my income. I like the town, it is low crime and an older demograhic. While commuting is not ideal, I think it is worth it to save 50K.
I would be occupying the house, not renting it out.
The lender might ask for a letter from your Employer, either a stand-alone note on letterhead, or as part of their Employment Verification, confirming that the distance will not result in a reduced workload, or affect your income.
How far would lender consider as maximum commute from job to home I want to buy? My question pertains only to this issue, not all of the other factors that are considered in a mortgage loan.
I am looking in a town 66.4 miles from my job (approx. 1 hour and 8 minutes). I can buy a home in that city for 140K - 150K vs. the 200K I would need here. I am certain I would not even qualify for 200K based on my income. I like the town, it is low crime and an older demograhic. While commuting is not ideal, I think it is worth it to save 50K.
I would be occupying the house, not renting it out.
How many years of work do you have left? Commuting 30k miles/year is going to cut into that $50k house savings pretty quick. I would say you would be better off seeing if you can qualify in the higher priced town unless you are nearing retirement.
To some it is. Some people spend an hour to go 20 miles, 60 miles can take less than an hour but to me it's more tiring driving the 60 miles plus when weather conditions get bad the long ride is worse.
The thing is once you buy a house the mortgage company does not care or know if you switch jobs or decide to find a job 2 hours away.
I linked an article below but I just wanted to say before you would purchase you should weigh the savings in mortgage versus additional transit costs. If you would still want to move forward with it then I would strongly urge you to rent in that area for at least a year before making a purchase.
I do feel the commute would be worth it to own a home rather than continuing to rent at around $ 1,300.00 per month. I know for a fact I would not be eligible for a higher priced home that is closer to me. Plus, I don't even really like this area.
I wondered if there was a specific lender requirement regarding distance, but maybe there isn't.
It would not be long term. At some point, I would seek employment closer to my home. But for now, I just want to get out of the rent trap, which is literally money in the toilet.
I could get a condo here, but I loathe the idea of a condo (too much like apartment life), and really want a SFH. Would rather commute and have a house than not commute and have a condo.
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