Navigating the mortgage loan process when relocating
If you’re thinking about relocating to Las Vegas for a new job — or even if you’re working remotely and just want a change of scenery — there’s a lot to consider when it comes to securing a mortgage. Moving to a new state is a big deal, and while the process might seem a bit overwhelming, I’m here to help break it down for you. With years of experience in the industry, I’ve guided countless clients through the complexities of relocating.
Remote work vs. job relocation
In today’s world, especially after the pandemic, we’re seeing two main types of relocations. Some people are moving to Las Vegas for a new job, while others are keeping their current job and just changing their location. Both scenarios are common, and while they share some similarities, there are a few key differences to keep in mind.
If you’re staying with the same company but working remotely, you will need a letter from your employer. This letter should confirm three things: that you’re allowed to work remotely, that Las Vegas is an acceptable location and that your pay won’t change. Once we have this letter, we’re good to go on the mortgage front.
If you’re taking a new job here in Las Vegas, we will need an offer letter instead. This should outline your pay, start date and position — whether you’re salaried or hourly. These details are crucial to ensuring your mortgage application goes smoothly.
State-to-state mortgage differences
One question I often get is whether there’s a big difference between applying for a mortgage in your current state versus a new one like Nevada. The process is pretty similar overall, but there are some nuances to consider — especially when it comes to your job situation.
For instance, if you’re moving from a W-2 position (with stable, predictable income) to a 1099 role (which can be more variable), there are a few factors to consider. Typically, for a traditional loan, you will need a two-year history of 1099 income with filed tax returns, allowing lenders to average your income over that period. There are alternative loan programs available, but because they carry a higher risk, they often come with higher interest rates.
On the flip side, if you’re moving from a 1099 job to a salaried role here in Las Vegas, that’s usually an easier transition. For those who are paid hourly, just know that lenders typically average your income over two years, which can make things a bit trickier if your hours fluctuate.
Beyond your job situation, different states have varying property tax rates, which can affect your overall monthly mortgage payment. For example, Nevada’s property taxes are relatively low compared to some other states, which can be a nice perk when relocating.
Avoiding common pitfalls
Let’s be real. Things can go wrong during the mortgage process, especially if you’re relocating. One of the biggest mistakes I see is working with a lender who doesn’t fully vet your financial situation upfront. At our company, we like to issue a pre-underwritten approval, which means we’ve already checked your income, credit and assets before you even make an offer. This gives you peace of mind and drastically reduces the chances of a last-minute denial.
However, I’ve seen scenarios where buyers, particularly those purchasing new builds, have had their loans denied just days before closing. This usually happens because the lender didn’t anticipate issues related to income or employment changes. It’s a tough situation that could have been avoided with better preparation.
Tips for a smooth transition
1. Avoid big financial changes: Hold off on major purchases or opening new credit lines before you close on your home. Lenders may check your credit right up until the last minute, and any new debt could throw a wrench in the works.
2. Keep your debt low: Try to keep your debt utilization under 30 percent. This keeps your credit score in good shape and makes you a more attractive borrower.
3. Be careful with large deposits: If you’re selling a home in another state and transferring funds, consider having the escrow companies communicate directly. It’s usually smoother that way, especially if you’re aiming for a simultaneous close.
4. Work with experienced pros: The most important advice I can give is to work with a lender and real estate company that has experience with relocations. The difference between a smooth transaction and a stressful one often comes down to the experience and expertise of the professionals you’re working with.
Why experience matters
Relocating is a big step, and the last thing you want is for your mortgage to fall through at the last minute — especially when the boxes are packed, and you’re already in route to your new home. By working with experienced professionals who know the ins and outs of the process, you can make sure your move to Las Vegas is as smooth and stress-free as possible.
It’s important to remember that securing a mortgage isn’t just about finding the lowest rate; it’s about finding the right experience. Mortgage rates don’t vary much from lender to lender, so it’s crucial to prioritize expertise and service. This way, you can focus on what truly matters: Settling into your new home and beginning this exciting new chapter in your life.
Joseph Ciaglia is the vice president of note. A Mortgage Agency. He is a prominent figure in the Las Vegas mortgage scene, with 22 years of experience. In 2021 and 2022, he earned recognition from one of the nation’s largest mortgage lenders as a Top Mortgage Loan Officer in Nevada, Top 20 Mortgage Loan Officer in the Country and Top Purchase Loan Officer in Nevada.
