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Hi. I am graduating with my MBA in a few weeks and have accepted a job that I will start later this summer in a different state. My wife and I would like to move to the new area, buy a home, and get settled before I begin work, but I understand it can be difficult to get a mortgage without having already worked the new job and producing a pay stub. We have the finances to pay the down payment and the mortgage until I begin working. This will be my first time purchasing a home... what do people normally do when they start a new job in another state and want to buy? Do you essentially just have to figure out a temporary living situation long enough to get that first pay check before you can actually move into a home? Any thoughts or experiences anyone has had would be greatly appreciated.
As a first time buyer, I am going to assume you are going to want to go with the minimum down, which will point us to FHA or a state bond program.
FHA requires you start your new job in 30 days, with verifiable written offer. That is FHA. Many investors have overlays (their own requirements) and will want the job to be started. If you want to buy before starting, you will need to find a lender that underwrites strictly to FHA guidelines.
Most bond programs will want you to be on the job, some may requrie 3 months on the job. The also vary greatly from state to state, so I won't even attempt to guess that one.
I was in the same situation except my start date was not that far out. I stayed in a hotel until closing, the day before the closing occurred was the first pay stub I received from my new job. They accepted that and we closed on time the next day.
You will have to find out your actual start date, then go find the house you want about 2 weeks before you start. Get a cheap extended stay and work the new job while they process your loan and explain to them you will get your first pay stub on whatever day it is.
In past times you could have bought before starting with a letter from your employer. Now, you will have to provide at least 1 pay check before you can close.
We still have investors underwriting and adhering to FHA guidelines, which will allow you to close with just verification you will start in 30 days. We are a correspondent lender that closes loans in our own name and delivers to these investors post closing. The investors are national lenders with their own retail departments.
Sometimes brokers have stricter rules.
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