Today, we live in a brave new world of modern technology. In years past, when someone wanted to move to a new city, they had to take the time to travel there and scout locations. Today we have technology at our fingertips. You can now buy a home in a new location without living locally. Here are some ideas to get you started.
How to Buy a Home Out of State
Buying a home out of state can be a complex process, but it can be done smoothly with careful planning and the right team of professionals.
Start by researching the real estate market in the area. Look into the different neighborhoods, school districts, and property values. Talk with a local mortgage lender and get preapproved to help you understand what you can afford.
Working with a local agent who knows the area well can be extremely helpful when buying out of state as they can provide you with valuable insights and guidance throughout the process. Find an agent who became proficient in the virtual real estate experience during the pandemic. They will have tips, tricks, and ways to send you updates regularly, including video tours. Technology lets you view properties online through virtual tours and video calls with your agent. This can help you narrow your search and save time and money on travel. That doesn’t mean you don’t want to visit in person at all. You should schedule a time to visit the area and several homes if possible.
You also want to find out the local requirements for buying a home, such as the possible need for a closing attorney or creating an escrow account, which will depend entirely on the state laws. You also want to work with a local home inspector to ensure the property is in good shape and know what might need to be done before you close.
Depending on the state, you may be able to close the deal remotely using electronic signatures and wire transfers. Plan your travel accordingly if you need to be present for the closing.
Primary Residences vs. Second Homes
Your process may be different if you are buying a primary residence or second home. There are even more differences if you plan to buy a vacation rental or investment property. It’s essential to understand the difference when planning for your purchase.
Things you’ll want to consider include:
- Your finances include additional expenses like property taxes, insurance, and maintenance costs.
- The purpose of the second home and whether it will be a vacation for personal use or rented out.
- The location, including proximity to your primary residence and the local real estate market.
- Home maintenance, especially if you live far away.
- Implications for taxes and insurance, be sure to consult with an accountant.
- The various financing options for purchasing a second home, such as a traditional mortgage, a home equity loan, or a cash-out refinance.
The Importance of Having a Local Homebuying Team
If you are buying a home out of state, either as a primary residence or a second home, it’s critical that you have a local home buying team on your side. Local mortgage lenders understand the financial requirements and necessary closing information that will lead to your success. A local real estate agent can work on the process and knows the area to provide you with information so you can make a great decision.
Call, Click, or Come In!
GoPrime Mortgage in Asheville, NC, is here to help our neighbors find their road home. Talk with Zachery Adam and his team of independent lenders to start the process of getting preapproved. Learn more at GoPrimeNC.com and contact us today.