I was reminded yesterday of something that had happened to us when we moved to a new state. It does not matter how high your credit score or how much money you have in the bank if you are moving to another state, maybe to retire, do not plan on getting a mortgage in the new state if you put on the application that it will be your new principal residence.
Lenders look at income primarily from a job. They do not care about most of the investment income or interest.
If you want to get a mortgage instead of using your savings or investments you may have to say you want to purchase a second home. They may charge a little higher interest rate but with rates today that will still be a bargain.
I plan to place this blog as an article on Retire Near Myrtle Beach.
SANDY KELLER, ABR, SFR, e-PRO, REALTOR
Myrtle Beach Real Estate Retirement and Real Estate Near Myrtle Beach
Thanks for sharing this valuable info!
What if you sold your home in your previous state? I am confused. When I moved to California, I bought a new principal residence. Does this apply only to South Carolina?
I know it's something we don't think about but basically you can't move permanently to a new state and apply for a mortgage if you do not have a job or guaranteed income.
Mortgage companies do not accept investments or even cash in a savings account because you could loose or spend. It doesn't make sense because how many people have a job that can't be lost.
I agree you take a small hit on interest rate but right now with rates so low, there is still a bargain in there!