How to Buy a House Out of State

Many homebuyers find themselves searching for a home in another state because they’re moving for a new job. Others may find that as their family grows, they want to relocate to their home state to receive the support of extended family. Likewise, retirees may move to a different state to be closer to their children or grandchildren. 

If you’re relocating for work, be sure to discuss possible relocation services that may be available from your company. These packages can include financing house-hunting trips, covering your cost of moving and temporary housing you may need. 

Some homebuyers discover that the cost of living is much lower in another state. That typically includes the housing market, which means that you can often purchase a larger home in a favorable location without having to increase your purchase budget. 

Of course, you may not be moving at all but purchasing a home in another state to serve as a rental property. For example, you might purchase beachfront property in another state in the hopes of generating income from vacation rentals. 

You’re probably already familiar with most of the popular online real estate websites. You can conduct a home search in the state (or even city) where you’re moving to learn more about the real estate market. The best sites also provide photos or even virtual tours of available homes, which can give you a better feel for your options. 

It’s important to try and work with a local real estate agent. They may be able to show you how to buy a house out of state since they’ve helped countless other homebuyers achieve the same goal. They can provide unique insights into local ordinances or laws pertaining to property lines and more. 

And if you’re moving to a neighboring state, your real estate agent may be able to connect you to other real estate professionals in your new state who can guide you through the steps of buying a house in a different state. 

Depending on geography, traveling to the area can be the most challenging step. But if you’re planning to uproot your life to purchase a home in a new state, it may be worthwhile. A trip to your new city may also help you narrow down your desired neighborhood. 

You can also use the internet to compare the costs of living between states and cities. The website bestplaces.net offers a cost-of-living calculator as well as online reviews and data on crime, home prices, and other details. 

First, you’ll need to narrow your search for mortgage lenders licensed in the state to which you’re moving. Don’t worry if you can’t visit the mortgage loan officer in person; many of the core documents and processes can be completed electronically. 

If you’re moving for a new job, make sure to provide the lender with a copy of your job offer and your future salary. 

Whenever you buy a home, you will have to choose a loan type that fits both your needs and your budget. Common mortgage types include: 

• Conventional loans: Low-interest rates but requires strong credit 
• FHA loans: Ideal for buyers with low credit scores 
• USDA loans: No down payment for qualifying homes in rural areas 
• VA loans: No down payment for Military Members, Veterans, and spouses 

Your lender may help you narrow your loan options after reviewing your financial history and credit report. 

Before you buy a home, you can conduct a remote home inspection and an appraisal to validate the condition and value of the home. Once you make a purchase, you’ll work with your lender and a title company to pay any closing costs to complete the sale. 

It’s unlikely that you can completely relocate your belongings without the assistance of professional movers. Make sure to compare companies to find the best price and read online reviews to find a company with a strong track record of quality service. You may even consider purchasing movers insurance to protect any valuables during transit. 

Contact your future utility providers before you arrive at your home. That way, you’ll have access to electricity and water once you arrive. You can also contact your cable or internet provider, though you’ll likely need to be in the home to have these services professionally installed. 

It may help to create a move-in checklist. Besides your utilities, you’ll need to make arrangements for things like: 

• Transferring your mail 
• Establishing your banking situation 
• Registering to vote 
• Buying groceries and household items 

Now is a good time to invest in your hobbies or get connected to others through local organizations and events.