There is nothing more exciting than landing that new job you have been chasing! What better time to use the additional income and invest in that home you’ve had your eye on! Before you start packing the moving boxes, follow these steps to make sure you’re new home purchase is headed in the same direction as your career.
Don't Rush Things
Enjoy and celebrate the accomplishments of your new job, but don’t get carried away. Many of us tend to spend pay increases as soon as we receive it. This can lead to over-spending and eliminating any comfort the new job created. Upon receiving your new job, allow yourself at least three months to get accustomed to your new salary. This will give you a good idea of how much your disposable income has increased, and how much you can spend on your new house..comfortably!
Speak With a Lender
You will want to speak with a lender right away to determine how your new job, new position or pay increase will impact your ability to purchase a new home. Changes in employment, salary or industries could impact your ability to get approved for a home loan. If you have changed jobs, a lender will need the following things from you and your employer in order to close on a home loan: an offer letter, a role change letter if you have a title change and commensurate compensation package change, and the most recent pay stub and verification of employment.
Sign up at HomesforHeroes.com to speak with a Homes for Heroes lender. Let them answer your questions and walk you through the process without any obligation.
Set Your Goals
Before using your new salary to shop for a new house, understand what you are looking for in a new house. Once you have identified the goals for your new home, research how it will impact your monthly expenses, and then compare it to the increase in your salary. This is an important step that will help you reasonable understand if your new salary can accommodate the needs and wants of your new home. This is also a great step to complete with your real estate agent.
Example: You want to buy a new house in a better neighborhood
- Step 1: Research crime stats and school districts to find your new neighborhood
- Step 2: Research the average home price in your new neighborhood
- Step 3: Compare the potential increase in your monthly payments to the increase in your salary
Track Your Moving Expenses
You may be able to deduct your moving expenses when you are relocating for a job. The IRS requires your move to meet three requirements in order to deduct your moving expenses:
- Your move closely relates to the start of work
- You meet the distance test
- You meet the time test (the time test does not apply to members of the Armed Forces)
Determine if your move meets the IRS deductions, and then track your moving expenses to save!
Follow these steps to successfully buy a house for a new job! You will likely still have additional questions for finding the right home for your growing family, and Homes for Heroes is here to help. Sign up to speak with a Homes for Heroes specialist and have them answer your questions with no obligation.