I’ve recently experienced two different buyers with great credit and plenty of money for down payments who are unable to obtain home loans.  Why?  Because they live too far from the home they want to buy.

Most mortgage companies require home buyers to work in an area to show proof of income when buying.  For example, I was working with a teacher who was transferring from about 150 miles away.  No one would give her a loan until she could produce a month’s worth of paycheck receipts showing she did actually have a job here.  Every single lender recommended she rent an apartment for a couple of months before buying.

Another buyer is relocating here from Arizona.  They have a huge amount they can put as a down payment on a loan, but because they do not yet have pay check stubs, they too have to wait.

What are the options for these kinds of buyers?  One possible solution is to see if they can negotiate an early occupancy from the seller and close two months after they’ve relocated.  That’s about it unless you have a close relationship with the banker from whom you hope to borrow and the bank is locally owned – where the loan won’t be sold to an outside investor.

Happy moving!

Hope you have a wonderful Labor Day weekend, Shakadoo’ers!