Changing work status and buying a house

GatorCatsi

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Hey, if anyone has some insight on this, I'd love to hear it.

We're planning on moving to KC for a couple years to spend some time with the grandkids.

That's likely going to involve me switching from employee to contractor status. Also a slight chance I might change jobs, still would be a contractor if we move to KC, though.

Does anyone know if that would scuttle our ability to get a mortgage?

We're okay with renting, but if we can find a good deal on a house that needs some updating, would prefer to go that route.

Thanks!
 

BMF

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I don't think it would. You apply for the mortgage and tell them you're relocating to KC. As long as you have employment and can show income they don't care how long you plan to stay there. Having steady employment is probably the key (or steady income/proof of income).

@Concrete Helmet is the mortgage guy around here.
 

soflagator

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As long as it’s the same line of work, there should be zero issue. You’re allowed to change jobs, especially when moving locations. Even if it is different, assuming good credit and income to support it, I wouldn’t see a problem. I think that’s what you were asking, but maybe not. But as BMF said, Crete is the guy to get more specifics from. There could be different criteria today.
 

Theologator

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I’d take a careful look at how much you’d have to gain on a purchase/resell vs. rent. It’s hard to gain equity in 2 years and we’re due for a correction in the housing market. Rent feels like your throwing money away but you don’t want to be upside down in 2 years and that could linger if it happens.

We’re happy our grandchildren moved back within an hour+15 last fall. It’s great that you’ve got the opportunity and capacity to get close to yours. Savor it!
 

g8tr72

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Buy in a rural area. Get more self reliant. Enjoy the fam.
 

GatorCatsi

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I don't think it would. You apply for the mortgage and tell them you're relocating to KC. As long as you have employment and can show income they don't care how long you plan to stay there. Having steady employment is probably the key (or steady income/proof of income).

@Concrete Helmet is the mortgage guy around here.
That makes sense and if it were just a job change, I think what you're saying is accurate.
My concern is that I'll basically be going from "employee" to "self-employed", and wondering if that would affect things.
 

alcoholica

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That makes sense and if it were just a job change, I think what you're saying is accurate.
My concern is that I'll basically be going from "employee" to "self-employed", and wondering if that would affect things.
I don't deal with consumer loans. i think a lot of what BMF said is true, but you'll probably have more documentation to provide. If you're staying with the same company, it will probably be minimal.

Honestly though, just contact your local back and ask to speak to a residential lender and get the info straight from the horses mouth. They all sell their loans to the same people basically, so same rules.
 

BMF

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I’d take a careful look at how much you’d have to gain on a purchase/resell vs. rent. It’s hard to gain equity in 2 years and we’re due for a correction in the housing market. Rent feels like your throwing money away but you don’t want to be upside down in 2 years and that could linger if it happens.

We’re happy our grandchildren moved back within an hour+15 last fall. It’s great that you’ve got the opportunity and capacity to get close to yours. Savor it!

This is solid advice. There WILL be a 'correction', and it will happen within the next 12-24 months. Also, like Theo said, in two years you probably won't get your money back with closing costs on both ends (especially if you use a realtor on the back end). Most military guys I know who transfer duty stations won't buy if it's a 3-year or less duty assignment (because of not getting their money back).
 

GatorCatsi

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This is solid advice. There WILL be a 'correction', and it will happen within the next 12-24 months. Also, like Theo said, in two years you probably won't get your money back with closing costs on both ends (especially if you use a realtor on the back end). Most military guys I know who transfer duty stations won't buy if it's a 3-year or less duty assignment (because of not getting their money back).
Yeah, it'd have to be a good buy. Something that needs updating, and would make a good rental when we move, in case it's under-water valuation-wise.

I get what y'all are saying about a correction. I said the same thing when I moved to Hernando County in 2016. Wasn't sure how long I'd be here and home prices had been on a multi-year tear already. Figured a correction was due.

Now there's a little cinder block house -- 2 canals further from the Gulf than the place I'm renting -- that's listing for 100k more than it sold for last year.

But, yeah, I'm pretty cautious about getting into something right now that I don't plan on being in for at least 2 years.

The nice thing about KC is the prices don't go up as high or fall as hard as places like FL.
 

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