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Old 07-23-2017, 08:24 PM
 
85 posts, read 80,750 times
Reputation: 30

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Are there problems with working in one state and purchasing a home in another that is not an investment property ?
I understand you need to be employed usually to obtain mortgage financing. What will the questions be
from the lender regarding this situation ?

Will you be retiring soon which is the reason for the purchase of this house in another state ?
My answer to this would be yes, but not in the immediate future.

Are there other questions that I will be asked that I'm not aware of ?
There would be no other debt to speak of, as I will be staying with a relative in the interim of purchasing
a house in a different state.

Any response and all advice is welcome as I am clearly clueless when it comes to these things.
Thank you for your help in advance ! This forum has been an information machine for me. Thank you !

 
Old 07-23-2017, 10:06 PM
 
Location: Henderson, NV
1,073 posts, read 1,043,469 times
Reputation: 2961
Not enough information and should be in the Mortgage Sub-form of the Real Estate Forum.


Several experts on that forum can give you good advice.
 
Old 07-24-2017, 05:50 AM
 
Location: Southern Nevada
6,752 posts, read 3,367,193 times
Reputation: 10374
We are in a similar situation and the timing of everything is the tricky part. Sell this house and then close to get the proceeds, then buy the new house and close on that before we have to be out of this place. Then we have to get everything out there and moved it. I'm hoping for a (relatively) seamless transition, but I'm ready if it doesn't go perfectly.
 
Old 07-24-2017, 07:11 AM
 
85 posts, read 80,750 times
Reputation: 30
Quote:
Originally Posted by WVREDLEG View Post
Not enough information and should be in the Mortgage Sub-form of the Real Estate Forum.


Several experts on that forum can give you good advice.
Okay thanks... did post the question in the Mortgage section there. Thank you for the direction !
 
Old 07-24-2017, 07:13 AM
 
85 posts, read 80,750 times
Reputation: 30
Quote:
Originally Posted by Camaro5 View Post
We are in a similar situation and the timing of everything is the tricky part. Sell this house and then close to get the proceeds, then buy the new house and close on that before we have to be out of this place. Then we have to get everything out there and moved it. I'm hoping for a (relatively) seamless transition, but I'm ready if it doesn't go perfectly.
Hope everything works out well and smoothly for you Camaro5. Please share your experience(s) here if
possible so "clueless" (me) can learn something...!
Take care and good luck !
 
Old 07-24-2017, 07:24 AM
 
Location: Southern Highlands
2,413 posts, read 2,029,998 times
Reputation: 2236
I have done this. It was exactly like any other real estate purchase.
 
Old 07-24-2017, 07:31 AM
 
85 posts, read 80,750 times
Reputation: 30
Quote:
Originally Posted by Cold Warrior View Post
I have done this. It was exactly like any other real estate purchase.
Did you say that it was an Investment property or a 1st home ? It wouldn't be a 2nd home for me because I am selling my current home and will be using some of the proceeds to purchase a home in another state.
I was just wondering if there would be a red flag shown to the lender if I were to purchase an out of state property that wasn't an investment, though I would be working in a different state.
Would your recommendation be to say that it was an Investment purchase ?

Thank you Cold Warrior for responding and sharing !
 
Old 07-24-2017, 09:45 AM
 
Location: Paranoid State
13,044 posts, read 13,865,519 times
Reputation: 15839
You may end up owing state income taxes in both states.

A common tactic is for someone to buy a house in Las Vegas, work & rent an apartment in California, and claim Nevada as their primary residence in an attempt to avoid California state income taxes.

That doesn't work. The California Franchise Tax Board is far smarter than that. You'll still owe California state income taxes, and the FTB *will* bill you & fine you.
 
Old 07-24-2017, 09:54 AM
 
390 posts, read 755,655 times
Reputation: 456
Yes SportyandMisty are correct. When you work in Calif. they report and they will until you quit working. This includes a business. Had to prove I no longer live in Calif and I did get a warning type bill that my taxes were due. Once you file with IRS it will help if you reside/work in another state, but Calif will still ask questions.
Same goes for auto registration.
 
Old 07-24-2017, 10:09 AM
 
Location: Paranoid State
13,044 posts, read 13,865,519 times
Reputation: 15839
California FTB will ask for all your banking records. They'll analyze your pattern of ATM use, debit card use, credit card use, etc to establish where *actually* are.

Ditto for doctors records, dentist records, cell phone records, etc.

IF they decide you're California state resident, you'll owe the tax and the burden will be upon you to prove you were not a California state resident.

Even if you succeed, you'll owe income tax on the days you really were inside the state. For example, professional sport athletes end up filing state income tax returns in every state where they play a game or practice, regardless of their domicile.
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