Relocation Assistance

Relocation Assistance

Why do people relocate?

v   Financial considerations:  To improve your own SoJOR.

v   Housing                                                                              v   Family

     ·        Want a newer/better/larger house                                         ·        To establish own household.

             or apartment.                                                                       ·        Change in marital status. 

    ·        Want to own a home, not rent.                                               ·        Other family-related matters.

    ·        Cheaper house.                                                                      ·         Proximity to or apart from family

    ·        Downsizing:  A small house is needed.                                              and/or friends.

    ·        Upsizing:  A larger house is needed.                          v   Employment

    ·        Different neighborhood experience.                                        ·        Job Opportunity:  New Job or job

    ·        Foreclosure/eviction/zombie foreclosure.                                            transfer.

    ·        Change of scenery.                                                                 ·        To be closer to work/easier 

    ·        Relocating from the city to the suburbs.                                             commute.

    ·        Relocating from the suburbs to the city.                                  ·        To look for work or lost job.

                                                                                                          ·        Retired.

v   Other

     ·        All other reasons

     ·        Relationship with unmarried partner

     ·        Educational Opportunities: To attend or

            leave college.

     ·        Health reasons

     ·        Change of climate.

     ·        Natural disaster.

Definitions

Deed - A deed proves ownership. The person named on the deed has the legal right to sell, convey, or transfer the ownership. The seller holds on to the deed till the buyer pays the full purchase price plus any interest. The deed is what transfers the title.

 

Title - A title follows the deed. The person named on the title can use the property, such as selling it, developing it, or possessing it.  A title is documented and available down at the county courthouse recorder’s office.  You should perform a title search to confirm

(i) the property's rightful owner name and face match the name on the title and the Ginicoe face at the bank

(ii) and to make sure there are no liens, claims or debts owed.

For example - the owner may have a court judgment against the property. It would show up on the title. Or bail bondsman liens, property taxes that are late on the property or similar debts would all show up during a title search. Your new title should be FREE and CLEAR before you close.

 

Debt-to-income ratio (DTI) – This number is needed so your lender can be in compliance with FNMA, FHMC, VA, FHA lending policies. It is calculated by add up your total monthly debt payments from car note, boat, personal note, car insurance, cell phone bill, etc. divided by your total gross monthly income before income tax.

A lower DTI ratio generally means you have a better chance of being approved for a mortgage. A high DTI ratio can make it harder to qualify for a loan because it indicates that you may have too much debt relative to your income before taxes.

If your DTI ratio is high, you can try to offset your debt with high cash reserves. You can also consider lowering your DTI to put yourself in a better position to handle unexpected expenses. This is why we suggest that you not take on any new debt once you decide to relocate.

A debt-to-income (DTI) ratio of 35% or less is generally considered good for mortgage approval. However, the maximum DTI ratio varies by lender and loan type: 

 

• Lenders generally prefer: A DTI of 36% or less, with no more than 28%–35% of that debt going toward servicing a mortgage 
• Some mortgage lenders allow: A DTI of up to 43–45% 
• Some FHA-insured loans allow: A DTI of up to 50% 
• VA loans: Can have more lenient DTI requirements, sometimes allowing a DTI of up to 60% 

FNMA – Federal National Mortgage Association.

Freddie Mac – Federal Home Loan Mortgage Corporation.

FHA – Federal Housing Administration

VA – Veterans Administration

LV - Loan Verification. Your mortgage lender will contact each bank where you have accounts to verify all loans in your name and co-borrower. Please don't take out any new loans once you decide to move. This will hurt your income-to-debt ratio.

 

DV - Deposit Verification. Your mortgage lender will contact each bank where you have accounts to verify all deposits in your name and co-borrower. They will look at your average daily balance over the past 90 days. Do not move large amounts of money around once you decide to relocate.

 

EV - Employment Verification. Your mortgage lender will contact each employer of yours and your co-borrower where you currently work. They are looking back at least 2 years. Stable monthly employment showing rising income each year is key here. At least 2 years on the same job or same industry will help your income ratio.

v    What if I can’t afford a 20% down payment?

The average down payment on a house is actually around 6% for first-time buyers. Some lenders have affordable loans with down payments as low as 1%-3%. 

A 20% down payment will get you a better rate and lower payments. You can shop around or contact one of our relocation partners. We will find you the best money-saving options no matter what down payment budget you have.

                                                                                                                                                                                                                                                             

v   How long does the mortgage approval process take?

Like most things related to improve your housing score, this depends on a few factors. 

Type of loan 

Time of year 

Personal financial details 

If everything goes smoothly, the process can take about 1-2 months.