Should you move to Dallas, Texas?
Are you looking to relocate, specifically to Texas, and you’re concerned about getting a home
loan? Do you want to know all the rules and regulations regarding your current job and your
new job? What do you need to ensure that your home loan will be approved? Stick around, this
video is for you.
Hey, what’s up everybody? Brian McCauley here, your mortgage expert. Now, more than ever,
everyone is talking about Dallas, Texas. People are relocating to Texas. It’s a really, really
popular state. People love the opportunities here. They like the freedom and prosperity. They
like the weather and the people. They also like the fact that there’s no state income tax. I could
go on and on, but if you’re a potential home buyer out there and you’re relocating to Texas, this
is part one of a three-part series where I’m going to talk about your income. Check it out.
Your Income and Getting a Mortgage When Relocating to Dallas, Texas
This is a big deal, so I’m going to give you a couple of things that mortgage guidelines require.
First and foremost, whenever you’re moving, let’s just do a hypothetical from California to
Texas.
The mortgage lender wants to know, number one, are you relocating with your current
employer? If you’re relocating with your current employer, lenders are going to want some type
of relocation or transfer package. Now, sometimes, depending on the company’s position on
cost of living, employers will let their current employees keep their current income.
So if you’re moving from California to Texas and you have a $100,000 base salary, it will say,
“Hey, this person, Jane or Joe, is moving from California to Texas. They’re relocating, everything
is staying the same, their pay is the same.” Sometimes, if they’re relocating or transferring from
one state to Texas, everything stays the same except their income actually goes down. We’ve
seen this as a reduction.
So let’s say if you live in California or Seattle or somewhere a little more expensive than Texas
and you have a $100,000 salary, your company might be relocating you here, but they may be
dropping your salary from $100,000 to $90,000 or $80,000, whatever it is. Lenders have to
know this stuff. Here’s the reason why: they want to make sure the income that you currently
have and the income that they’re going to use to qualify is staying the same.
If it’s changing or being reduced, that will affect how much money you’re bringing in and
therefore how much money you have to make the mortgage payment and cover the rest of
your overall debts. Lenders want to assess that risk when they’re pre-approving you and giving
you the correct income moving forward. Think about that when it comes to relocation or
transfer.
The second piece is specific to remote employees. COVID changed the landscape of how people
could work. 50% or more people were working remotely, doing everything from Zoom.
So a lot of times, people are out of state, moving to Texas, and it’s not a relocation or transfer
package. They’re just remote workers and they say, “Hey, I can work from anywhere. I can work
from my house. I can work from California. I can work from Starbucks. I can work from the
moon.” We’re like, “Cool, no big deal. Not a problem with us.”
What we’re going to need as a lender is a remote working letter that says, “Hey, to whom it
may concern, this person is remote. They can work anywhere.” We want to make sure that’s
the case.
When you’re a remote worker, the biggest concern is ensuring a consistent income to make
mortgage payments. One common scenario is when someone plans to move to Dallas, Texas,
but will not continue working with their current employer. As a lender, we inquire about their
employment plan. What kind of job will they have? When will it start? What will be their pay
structure (W-2, 1099, full-time, salary)? Sometimes they already have a job lined up, while
other times they don’t.
Here’s the secret: lenders want to see either an employment contract or an offer letter from
the future employer. This document should specify the start date, job title, working hours,
hourly wage, or salary. It is crucial to demonstrate that the position and income are
guaranteed, as their current income will cease. We want assurance that their new income will
support their mortgage. Based on this information, we determine the creditworthiness of the
borrower.
Here’s the kicker: you don’t have to start your new job before closing on the house. There’s
some flexibility in the guidelines. However, the key takeaway is that you must have a
guaranteed full-time job in place, preferably W-2, either salaried or hourly. Furthermore, you
should start this job within 60 days of the closing date when you receive the keys to your new
home. These factors are crucial for home loan approval and a smooth, timely closing.
This information is essential because many people are unaware of the various aspects involved
in home loans. Take these considerations into account to ensure your home loan is approved
and the closing process goes smoothly. This concludes part one of the relocation discussion,
specifically regarding income.
If you have any questions or want to schedule a consultation, feel free to contact us via text,
call, or email. We are always here to assist you!
Should you move to Dallas, Texas?
Are you looking to relocate, specifically to Texas, and you’re concerned about getting a home
loan? Do you want to know all the rules and regulations regarding your current job and your
new job? What do you need to ensure that your home loan will be approved? Stick around, this
video is for you.
Hey, what’s up everybody? Brian McCauley here, your mortgage expert. Now, more than ever,
everyone is talking about Dallas, Texas. People are relocating to Texas. It’s a really, really
popular state. People love the opportunities here. They like the freedom and prosperity. They
like the weather and the people. They also like the fact that there’s no state income tax. I could
go on and on, but if you’re a potential home buyer out there and you’re relocating to Texas, this
is part one of a three-part series where I’m going to talk about your income. Check it out.
Your Income and Getting a Mortgage When Relocating to Dallas, Texas
This is a big deal, so I’m going to give you a couple of things that mortgage guidelines require.
First and foremost, whenever you’re moving, let’s just do a hypothetical from California to
Texas.
The mortgage lender wants to know, number one, are you relocating with your current
employer? If you’re relocating with your current employer, lenders are going to want some type
of relocation or transfer package. Now, sometimes, depending on the company’s position on
cost of living, employers will let their current employees keep their current income.
So if you’re moving from California to Texas and you have a $100,000 base salary, it will say,
“Hey, this person, Jane or Joe, is moving from California to Texas. They’re relocating, everything
is staying the same, their pay is the same.” Sometimes, if they’re relocating or transferring from
one state to Texas, everything stays the same except their income actually goes down. We’ve
seen this as a reduction.
So let’s say if you live in California or Seattle or somewhere a little more expensive than Texas
and you have a $100,000 salary, your company might be relocating you here, but they may be
dropping your salary from $100,000 to $90,000 or $80,000, whatever it is. Lenders have to
know this stuff. Here’s the reason why: they want to make sure the income that you currently
have and the income that they’re going to use to qualify is staying the same.
If it’s changing or being reduced, that will affect how much money you’re bringing in and
therefore how much money you have to make the mortgage payment and cover the rest of
your overall debts. Lenders want to assess that risk when they’re pre-approving you and giving
you the correct income moving forward. Think about that when it comes to relocation or
transfer.
The second piece is specific to remote employees. COVID changed the landscape of how people
could work. 50% or more people were working remotely, doing everything from Zoom.
So a lot of times, people are out of state, moving to Texas, and it’s not a relocation or transfer
package. They’re just remote workers and they say, “Hey, I can work from anywhere. I can work
from my house. I can work from California. I can work from Starbucks. I can work from the
moon.” We’re like, “Cool, no big deal. Not a problem with us.”
What we’re going to need as a lender is a remote working letter that says, “Hey, to whom it
may concern, this person is remote. They can work anywhere.” We want to make sure that’s
the case.
When you’re a remote worker, the biggest concern is ensuring a consistent income to make
mortgage payments. One common scenario is when someone plans to move to Dallas, Texas,
but will not continue working with their current employer. As a lender, we inquire about their
employment plan. What kind of job will they have? When will it start? What will be their pay
structure (W-2, 1099, full-time, salary)? Sometimes they already have a job lined up, while
other times they don’t.
Here’s the secret: lenders want to see either an employment contract or an offer letter from
the future employer. This document should specify the start date, job title, working hours,
hourly wage, or salary. It is crucial to demonstrate that the position and income are
guaranteed, as their current income will cease. We want assurance that their new income will
support their mortgage. Based on this information, we determine the creditworthiness of the
borrower.
Here’s the kicker: you don’t have to start your new job before closing on the house. There’s
some flexibility in the guidelines. However, the key takeaway is that you must have a
guaranteed full-time job in place, preferably W-2, either salaried or hourly. Furthermore, you
should start this job within 60 days of the closing date when you receive the keys to your new
home. These factors are crucial for home loan approval and a smooth, timely closing.
This information is essential because many people are unaware of the various aspects involved
in home loans. Take these considerations into account to ensure your home loan is approved
and the closing process goes smoothly. This concludes part one of the relocation discussion,
specifically regarding income.
If you have any questions or want to schedule a consultation, feel free to contact us via text,
call, or email. We are always here to assist you!
