How to Buy a House When Moving Out of State: A 14-Step Guide

If you’re thinking about buying a home in another state — whether that’s a new home to relocate to, a vacation home or an investment property — there are a few things you’ll want to know before you start your search.

Ask yourself the following to establish your baseline:

• What is my reason for moving? This will be a driving factor behind many of the decisions you make during the home buying process. For example, if you’re moving for a change of scenery, you have a wider range of potential properties available to you because you’re less limited to a particular location than you would be if you were moving to start a new job.Similarly, if you’re interested in purchasing an out-of-state investment property, you’ll want to focus on areas with good school systems, a strong job market, low vacancy rates and reasonable property taxes, which will restrict your search.
• What state do I want to live in? No two states are alike; even neighboring states will have their own distinct amenities to offer, housing markets, costs of living and, most importantly, rules and regulations to follow. You’ll want to learn as much as possible about your soon-to-be home state — or, if you’re purchasing a vacation home or investment property, secondary state — before you buy. The more informed you are, the less anxiety you’ll feel and the greater your chances of success.It’s OK if you have a few contenders here — the goal is to narrow down your list as much as possible and to do your homework before starting your official search.
• What is my timeline? Your reason for moving will also dictate your timeline. If you’re buying a house in another state because of a new job or a military reassignment, you likely have a firm deadline, which can add urgency to your search. Even if you’re moving for personal reasons, if you have school-age children, you’ll probably want to plan your move around their academic calendar to avoid disrupting their education. Relocating to be closer to family can also impose its own deadlines, especially if you intend to help care for an aging loved one. Keep this deadline — firm or otherwise — front and center when determining your timeline. Depending on the urgency, it might even make sense to relocate to your new state before purchasing a home, to eliminate some of the pressure.
• How much can I afford to spend? The budget for your move should include not only the purchase price of a new home but also any move-in costs you’ll need to cover, such as paying for a moving company, providing initial upgrades to the property, setting up utilities, and so on. Remember that different states have different housing markets, which will dictate how much house you can actually afford. There are multiple parts of the country with more buyer-friendly housing markets; for example, recent reports show that multiple cities in Florida currently have a surplus of available inventory. If you aren’t required to move to a particular state or area, it could be worth exploring homes in these markets to find more affordable options.
• What do I intend to do with my current property? If you already own a home in your current state, you’ll need to figure out what to do with it before relocating. Whether you sell your current home or keep it as a rental, it can complicate your move; you’ll need to carefully coordinate the timing with both your home search and your relocation. Start planning as early as possible to reduce stress further down the road.
• What does my ideal neighborhood look like? Now for the fun part: dreaming of life in your new home state. When you picture yourself settled in your new home, what do you envision? Are you located in a major metropolitan area, surrounded by high-rise buildings and all the amenities city living can afford? Are you in a quiet cul-de-sac with friendly neighbors close by and plenty of space for your kids to play? How about in a laid-back, beach-side community, just steps away from the shore? Or perhaps a more rural area, with open sky and pastures as far as the eye can see, with ample room to grow? As fun as this exercise can be, there’s also a practical side to it. When imagining your ideal neighborhood, you’ll also want to consider things such as your school district, commute to work, access to necessities, neighborhood safety and so on. Whether you’re deciding between multiple states or multiple locations within a particular state, this exercise will narrow down your list of options and steer your search.
• What does my ideal home look like? Is it a condo, a single-family home or a multifamily property, where you can live in one unit and rent out the rest?
  How many beds and bathrooms are you looking for? Do you require any special features, such as an in-law suite, a pool or accessibility features? Are you looking to buy new, or are you open to a fixer upper? Once you’ve determined which area (or areas) you’re interested in, creating a wishlist for the perfect home will further refine your search. Dream big, but be realistic — even a home that checks most, but not all, of your boxes could still be a great fit.

Relocating to a new state is a major undertaking, even without the added pressure of buying a house. Everyone’s situation is different; in some cases, it might make more sense to move to a new state before you buy, and rent until you’re able to find your perfect property. Other home buyers may want to avoid the hassle of starting their search after they’ve relocated.

There are certainly pros and cons to both scenarios — let’s break them down so you can more easily decide what makes the most sense for you.

Buying a house in another state – whether that’s your neighboring state or across the country – is more intensive than buying one in the next town over. Depending on various factors, this process can take weeks or even months to complete.

But don’t despair. By following this 14-step list, you can navigate the home buying process – including getting a mortgage when moving out of state – with confidence.

1. Narrow down your list. After asking yourself the series of questions we covered earlier in this article, you should have a shortlist of potential states – or, ideally, towns or cities – you’re considering moving to. Use the research you’ve compiled on each location’s costs, amenities, culture, attractions, schools, job markets and more to compare your options and determine where it is you want to move (or to purchase a second home).

2. Visit your new location. Once you know exactly where it is you want to move, plan an in-person visit. If you’ve never been to that city or town before, take an extended trip, and try to familiarize yourself with the area. Even if you’ve been to that location before, it can be helpful to look at it with a fresh set of eyes to confirm whether you can picture yourself being happy living there (or, in the case of a second home, spending extensive time there). This is also a great opportunity to start your search for a local real estate agent and even view some properties without the pressure.

3. Work with a local real estate agent. A real estate agent who is based in your soon-to-be home state – ideally, one who’s based in the actual area you intend to move to – is an invaluable resource when buying a house in another state. That’s because they have insider knowledge on:

• Neighborhoods: They can tell you which ones are up-and-coming, which ones are near the best schools, which ones are the quietest and more.
• Pricing: They can tell you what other houses in the area have sold for, where there’s room to negotiate and how to negotiate to secure the best price.
• Sellers: They know what sellers in the area are looking for and can help you position yourself as a more appealing buyer, which is especially helpful in highly competitive markets. Agents may even have existing relationships with sellers, either in a personal or professional capacity, which could give you an additional advantage.
• Laws: They’re familiar with state-specific laws and regulations about property disclosures, zoning, taxation and more.

Local agents may have access to off-market listings, increasing your available options, and you can leverage their professional network to find qualified appraisers, inspectors, contractors and more in the area. Plus, should you decide to sell your property at some point in the future, it helps to have an existing relationship with a local agent.

4. Ask about local assistance programs. You may be eligible for certain programs and benefits at both the local and federal levels. For example, first-time homebuyers across the country are eligible for a Federal Housing Administration (FHA) loan, a government-insured loan that enables you to purchase a property with a low down payment, even if you have a poor credit history.

For a state-specific example, look no further than New Hampshire Housing, which offers multiple programs, including down payment and closing cost assistance, rehabilitation mortgage programs and first-generation home buyer programs. This is where working with a qualified local mortgage broker comes in handy, as they can thoroughly evaluate your specific situation and offer practical recommendations on which programs you’re eligible for and which ones to pursue.

5. Get preapproved. There are a few good reasons why you should get preapproved or pre-qualified for a mortgage:

• It lets you know how much you can borrow before you even begin your search and how much you can afford based on your monthly debt.
• It enables you to discuss mortgage options with your broker, including whether a 15- or 30-year mortgage is best or whether a fixed or adjustable rate mortgage is best.
• It makes you a more desirable client for real estate agents and a more desirable buyer to sellers because it shows that you’re a credible buyer and can act fast if necessary.

The pre-qualification process is surprisingly fast – you could be preapproved in as little as 24 to 48 hours.

6. Schedule home tours. As a remote buyer, you’ll either need to travel out of state to attend showings (an easier prospect if you’re only moving to a neighboring state) or attend them virtually. If you have friends or family in the immediate area, call on them for help – they may be willing to attend an in-person showing on your behalf and have you join via video call. This first-person perspective is invaluable when touring properties out of state, as they may catch potential issues you’d otherwise miss in a virtual viewing.

7. Make a plan B. In an ideal world, you’d find the perfect home at the perfect price, and the entire process of purchasing a property from out-of-state, selling your current one and moving into your new home would be seamless. However, that’s rarely the case, especially if your move has a firm deadline. Be sure to have a backup plan in case you don’t find the right property before you relocate, whether that’s renting or temporarily staying with family or friends while touring potential homes.

8. Make an offer. Once you find a house you love (or a property your tenants will love), work with your real estate agent to make an offer. They may encourage you to consider an “as is” offer – that is, purchasing the property in its current condition, without any improvements by the seller – if the housing market in your new state is especially competitive or if you have an urgent deadline for moving.

9. Get a home inspection. Along with your real estate agent and mortgage broker, an inspector is an essential member of your home buying team. During your home inspection, they’ll conduct a thorough review of the property and flag any potential issues or areas that need attention, so you and your agent can decide whether to accept the property as is, negotiate with the seller for improvements or walk away from the deal entirely.

10. Schedule a remote closing. Again, if you’re able to attend in person, so much the better, but you can also schedule a remote closing and digitally sign any documentation. Should you choose to do a remote closing (also known as a digital closing, virtual closing or an eClosing), the keys to your new home will be sent to you, often by a courier. It’s important to note that not all states allow for Remote Online Notarization, which is a critical part of the remote closing process; some may require a hybrid closing. Again, working with a local real estate agent is valuable here, as they can explain the rules for your new home state and help you plan accordingly.

11. Hire a reputable mover. Moving across state lines – especially multiple state lines – can be exhausting. Having help from a reputable moving company that specializes in interstate transport can alleviate much of your stress and ensure your furniture and prized items arrive intact. When evaluating potential moving companies:

• • Start by getting an estimate for their services, so you can budget accordingly.
  • Make sure they have the proper credentials; interstate movers must be insured and are required by the Federal Motor Carrier Safety Administration to have a U.S. Department of Transportation (DOT) number.
  • Read online reviews from sites such as the Better Business Bureau and the DOT.
  • Ask family and friends for referrals; you might also ask your agent whether any of their previous clients recommend particular companies.

12. Make final preparations. When packing up your current home, be sure to set aside “first night” boxes – a box with everything you’ll need for your first night in your new home, including toiletries, medications, a change of clothes, phone chargers, basic clean supplies and snacks – for each member of your family and keep them in your car for easy access. If you have pets, be sure to pack first night boxes for them, too, with toys, bedding, pet food and litter. You should also call ahead before move-in day to set up utilities for your new house and mail forwarding to your new address.

13. Move. Time to set out on your adventure and start enjoying life in your new home state!

14. Bonus: Don’t forget personal admin! This includes things such as updating your vehicle’s registration, updating your voter registration, scheduling an appointment at the DMV to get a new license and so on.

Q: Can you purchase a home remotely?

A: Yes, you can buy a home remotely – and there are more digital tools available now than ever before to make the process seamless. Virtual tours, electronic document signing and remote online notarization mean you can view, make offers and even close on a home without being physically present. Working with a trusted local real estate agent makes things even easier, as they can provide firsthand knowledge about your desired market and act as your boots on the ground when you’re buying out of state.

Q: Is it difficult to buy a house in another state?

A: Buying a house in another state isn’t necessarily difficult, but it does require more planning than, say, buying a house in the town over. It helps to have the right team, including a local real estate agent who understands the area and a mortgage broker licensed in that state, who can help you navigate local laws and regulations, as well as location-specific home buyer programs and benefits. If you have friends or family in the area where you’re looking to purchase property, you can also call on them to get their perspective and potentially even tour homes on your behalf.

Q: Can I own a home in one state and live in another?

A: Absolutely. Many people own property in one state while living in another, whether it’s a vacation home, an investment property or a future retirement home. Just be aware that owning property in another state may affect your taxes, insurance and mortgage options. Your real estate agent, mortgage broker and attorney can help you understand these details before you buy.

What is the process for buying a home out of state?

Buying a home out of state typically looks something like this:

1. Narrow your list of potential cities or states down to just one.
2. Visit the area where you’d like to purchase a property. Even if you’ve visited before, it’s good to come at it with a fresh set of eyes.
3. Find a local real estate agent who can provide an insider’s perspective on the housing market, local laws and regulations, up-and-coming neighborhoods and more.
4. Ask about assistance programs at both the local and federal level that can make purchasing a property more affordable.
5. Get preapproved for a mortgage with the help of a qualified mortgage broker licensed in the state you’ll be moving to.
6. Schedule home tours. You can attend these either in-person or virtually. If you have friends or family members in your new state, they may even be willing to attend viewings on your behalf.
7. Make a plan B – whether that’s a short-term rental or staying with family or friends in the area – in case you don’t find the perfect property before your move.
8. Make an offer. Once you find the right house, it’s time to take the next step.
9. Get a home inspection to identify any potential issues with the property that will require attention, either from you or the current homeowner.
10. Schedule the closing. Ideally, you’ll attend in person, though a remote closing may be an option, depending on which state you’re buying in.
11. Hire a reputable mover. Make sure they’re properly licensed and read reviews to find a company you can trust.
12. Make final preparations, including packing up your belongings, creating a “first night” box, calling ahead to set up utilities for your new home and setting up mail forwarding to your new address.
13. Move to your new home.
14. Once you’re settled, update any necessary documentation, such as your vehicle’s registration, your voter registration and your license.

How long does it take to buy a home out of state?

While the entire process from start to finish can take anywhere from a few weeks to a few months, depending on factors such as how quickly you find a property, how competitive the market is and how smoothly inspection and financing go, it takes about a month to close on a home once you’re under contract. Getting preapproved for a mortgage when moving out of state can help expedite the overall process.

How do you get a mortgage when moving out of state?

Getting a mortgage when moving out of state is pretty much the same as getting one for the state you’re currently in. You’ll want to:

1. Find a mortgage broker licensed in the state you’re in.
2. Get preapproved for a loan.
3. Work with your broker to determine which loan program is best for you.
4. Gather financial documentation.
5. Apply for a mortgage.
6. Undergo appraisal and underwriting.
7. Receive final approval.

Preparing for a big move out of state? Check out our guide, “10 Questions to Ask Before Buying a Home,” to help you prepare. And, when you’re ready, give Blue Water Mortgage a call. Licensed in over 10 states (and counting) with hundreds years of collective experience to our name, we’ve seen it all and are ready to use our expertise to help you find the perfect property.