Narrow house

5 tips for buying a home out of state

Image source: Getty Images

Buying a home in another state doesn’t have to be as complicated as it sounds.

Key points

  • Buying a home in another state can create additional challenges.
  • You will probably want a trusted real estate agent to help you.
  • You should also research expenses.

Buying a home is a complicated process since you are making a huge financial investment. And if you’re buying a property in a different state, things can get even more difficult because of the distance.

The good news is that if you follow these five tips, you can make the process easier and maximize the chances of ending up with a new home that’s right for you.

1. Find a trusted real estate agent

Working with a good real estate agent can be crucial when buying a home in another state. Your agent can do a lot of the preliminary work for you so you don’t have to visit as many times. Your agent should also provide crucial information about which neighborhoods best suit your needs, which can be helpful if you don’t know the area very well.

2. Get pre-approved for a mortgage

When buying a property remotely, you absolutely cannot afford to waste time looking at homes that are out of your price range. Therefore, it’s a good idea to get pre-approved for a mortgage as early in the process as possible.

Getting pre-approved means a mortgage lender reviews all of your financial details, tells you how much you can borrow, and gives you the rate you’ll pay. You will still need to get final approval, but you will have a clear idea of ​​the exact amount of house within your budget.

You can also get a pre-approval letter from your chosen lender to include when you make an offer. This allows you to maximize the chances of your offer being approved, which is important when you live far away and don’t have time to tour endless homes before settling on one.

3. Take advantage of virtual screenings

Virtual tours have become popular during COVID-19, and they can be a great tool if you’re buying a house somewhere else. You can have your real estate agent visit the property and video call you so you can “see” it in person before getting on a plane.

By taking this approach, you can narrow down your choice of homes and potentially even find one you want to buy before visiting.

4. Be prepared for at least one in-person trip

While virtual tours can be helpful, there’s no substitute for viewing a property in person and touring the neighborhood. Therefore, you should be prepared to take at least one in-person trip.

If you’ve found a property you really like and the housing market is tight, you may need to be prepared to make that trip at the last minute so you can view a home quickly and make an offer before it’s gone. be sold.

If you don’t know of a particular home you want to buy, you may need to make several trips until you find one that’s right for you.

5. Research costs

Finally, you will want to be prepared for all the expenses that come with buying a home out of state. Your property taxes may be different than they are in your current state. And some closing costs, such as title insurance and transfer taxes, can vary significantly from state to state. You will want to know how much you are likely to have to spend in order to save enough.

You will also need to make sure you have some cash set aside for a long distance move, as it can cost several thousand dollars to move all of your belongings over long distances.

By following these tips, I hope you can find a great home at the right price – without going through a lot of the unnecessary stress that comes with buying properties from a distance.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.