Looking for New Place with New Job....What to do?

Question

Good day to all,

Current Situation.

I have currently as of last week resigned from my current 100+k job(NYC). Reason family(be closer to son). I have found a job that pays 50k beginning, goes up over time(city agency).

Current - NYC Resident (was renting). New - Connecticut (near Naval base New London)

I haven't started the new job it starts next month(living off military retirement). Savings a little over 15k( not including investments), military retirement pay little over 3000. Credit Score 730.

My issue: Should I just get an Apt or continue looking for a house in Norwich/Ledyard or surrounding areas? I've done the mortgage process with NFCU / PenFed, Veterans United and Dave Ramsey(ChurchHill Mortgage). For the exception of NavyFed the others have limited me to 250k because of the DTI (considering I haven't officially started my new job - so going off military retirement).NFCU is a headache to do anything with.

Should I wait until I start the new job and reapply, in a couple of months(take another hit on my credit score)?, or go with the 250k condo (as most properties im seeing need a lot of work and the VA isn't going to approve them). Last option Rent - As I know little about Connecticut and the options for condo's are limited compared to NYC.

Thanks for any guidance. It's been crazy looking for a place considering the short timeline I have. Even more so dealing with certain realtors/banks who seem like they want to help yet don't.

Hamp Lee III · Answer

Would it be possible to get a six-month lease?

This would give you a bit of time to get settled into the city and start looking for a house with a more relaxed timeline and a larger budget.

In this situation, I recommend considering the long-term results. I’m sure you want a nicer place for your son to come to, and a short (or small) sacrifice upfront may give you and your son what you both want and need in the future.

I hope this helps.

I wish you all the best.

Ruben Aguilera · Answer

If it's been less than 30 days I would recommend to look at CHFA programs as well. You might be able to get some Down Payment Assistance.

Also if you are buying a multifamily house with a tenant already in place; there is some lenders that will be able to qualify you for more based on your income PLUS the income you are receiving from the other unit.

In your area homes are relatively cheap so you have a great deal of options for sure!

Hamp Lee III · Answer

VA loans focus more on residual income than DTI. I’ll add @Joel Allen to the chat. He can explain more about it.

I wish you all the best.

Joel Allen · Answer

Thanks for the mention @Hamp Lee III

Reginald - When you applied with those lenders, did they run the scenario as a conventional mortgage or a VA loan. You're a military veteran, so it's worth having the lender pull a Certificate of Eligibility (COE) to see if you have remaining VA loan entitlement.

Whereas other loan products have strict DTI requirements, the VA loan focuses more on residual income. This is the discretionary income you have remaining each month after all major expenses and obligations are paid. You must have sufficient discretionary income left over, based on a sliding scale of geographic region and family size. A lender experienced with the VA loan can help analyze your situation and determine if you meet VA residual income guidelines.

One other note...is your new job in Connecticut in the same industry as your previous job in NYC? If you're continuing to work in the same industry, the lender should have the ability to view this as an intra-industry job change and utilize your income from your new job once you have 30 days worth of paystubs.

William Collins · Answer

So the first thing I noticed in what you posted is relative to your mortgages you mentioned that you have a military retirement. Do you have a veterans qualified loan available? The other thing is you're relocating into an area that is about to hit high season. The area is ripe for doing house hacking and Airbnb take a look in the Groton and Mystic area as well as close to the beach in New London. There's less seasonality in the Mystic area or you can go even farther east close to the Rhode Island border due to the ocean beaches right over the border. The big thing is if you are in that area understanding the short-term rental legislation in some towns and how it would impact doing a house hack short-term combination

Ruben Aguilera · Answer

Yeah no worries. By the way, are you already working with a Realtor? if not I'd love to help you out. While we talk about taxes, be aware the mill rates change from town to town and so do the veteran discounts. Some are more generous with their discounts than others. Please let me know if you need help locating a property!

Reginald Best · Answer

You are more than likely right. As I'm just researching, from different sources. Just trying to soak up as much information as possible.

Thanks again for the reply.

Ruben Aguilera · Answer

Really? That doesn't sound right but I might be wrong. I believe your property is assessed every 5 years by looking outside (you will have a person taking pictures) and every 10 years by inspection in CT. I might be wrong but that was a test question in my real estate exam.

Reginald Best · Answer

Thanks for replying. It is in the same Leo field. Yet making "about" half what I made in NYC. Most of the lenders that I've spoken to , they were going off my DTI. Based on what was spoken over the phone.The only loan im applying for is a VA.

I actually got the job. It is in Connecticut. So with that added income I should be able to apply for more. Yet since I have a short time period. Itt looks like I'll get a rental for now. Yet stay in a hotel until then. Hopefully I can get a short term lease.

Reginald Best · Answer

Thanks for the reply. I actually signed up and took the online class for that program.
I've been doing more research. What I didn't know was that every year your property is assessed. So although with a fixed rate mortgage you would still end up paying a lot more than is expected regardless of what's calculated. Reddit is a chest of information.

Looking for New Place with New Job....What to do?

Looking for New Place with New Job....What to do?

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