Blog
SUPPORTING RELOCATING EMPLOYEES WITH THE HOME BUYING PROCESS
For relocating employees, buying a home can be an exciting time, but it can also be an overwhelming part of the relocation process that requires careful planning and consideration. In this blog, we'll take a closer look at the basic process of buying a home for relocating employees and break it down into manageable steps. Whether a relocating employee is a first-time homebuyer or an experienced homeowner, these steps can provide you with valuable insights and tips to help your relocating employees navigate the process with confidence.
 |
Getting Mortgage PreapprovalMortgage preapproval involves getting a preliminary approval from a mortgage lender for a specific loan amount. It includes a thorough review of your employee’s financial information, including credit score, income, debt, and employment history, to determine how much money they can borrow to purchase a home. The lender will then provide a preapproval letter that outlines the loan amount and purchase price the employee is approved for and other helpful information and disclosures. This letter is crucial when making an offer on a home as it demonstrates to the seller that the relocating employee is a serious and qualified buyer. |
| Mortgage preapproval helps set the home buying budget based on what the employee can reasonably afford. It can also help identify any potential issues with credit or finances that may need to be addressed before applying for a mortgage. |
 |
Hiring a Home Finding AgentOne of the most valuable resources for relocating employees is a skilled real estate agent who can guide them through the home buying process. A real estate agent represents the buyer's interests, offering expertise and knowledge of the local market. They can help employees find properties that meet their specific needs and budget, while also providing insights into neighborhoods, schools, and other factors important to the decision-making process. |
| A real estate agent can help relocating employees navigate the home buying process and provide guidance and support throughout the entire transaction. They can assist with making offers, negotiating the purchase price, and reviewing contracts and legal documents to ensure everything is in order. |
 |
Exploring Specific NeighborhoodsFor relocating employees, it's important to focus on neighborhoods that align with their lifestyle and priorities. Different areas offer varying benefits, such as proximity to work, quality schools, and local amenities. Encouraging relocating employees to research and compare neighborhoods can help them find a location that best fits their needs. |
| Understanding the local real estate market in specific neighborhoods also provides a realistic view of available homes, their price ranges, and market conditions, making the home search more efficient and targeted and setting realistic expectations for budget and timeline. |
|
Evaluating Homes in PersonTouring homes in person is crucial for relocating employees to get a true sense of the property and its condition. While online listings are helpful, they don't always capture the full picture. Visiting homes allows employees to evaluate the layout, size, and overall state of the property, which is essential for making informed decisions. |
| Attending open houses and touring properties also gives employees a better understanding of the local market. They can see what types of homes are available in their desired area, their price range, and how they compare to other homes in the neighborhood. |
 |
Making the Purchase OfferMaking a formal offer on a home is a critical step in the buying process which establishes the terms and conditions of the sale. The offer typically includes the proposed purchase price, any contingencies or other conditions of the sale, and a timeline for closing. The seller may accept the offer as is, reject it outright, or make a counteroffer with different terms or a different purchase price. Working closely with a real estate agent or attorney experience in relocation is vital during this stage to ensure that the offer is structured properly and meets all legal requirements. |
| The offer is a negotiation starting point with the seller, and it's essential for relocating employees to feel comfortable with the terms and confident in the support they receive from their agent or attorney. |
 |
Conducting Inspections and AppraisalsInspections typically involve hiring a professional inspector to assess the condition of the property and identify any issues or repairs that may need to be addressed. This can include things like the roof, foundation, plumbing, electrical systems, and more. The inspection report can provide valuable information to the buyer about the property's condition and help them decide if any repairs or renovations are necessary before finalizing the sale. Appraisals, on the other hand, involve determining the fair market value of the property. This is typically done by a licensed appraiser who considers factors like the location, size, condition, and comparable sales in the area. The appraisal report can provide valuable information to the buyer about the property's value and help them ensure they are not overpaying for the home. |
| Both inspections and appraisals are important because they can help your employees avoid potential issues and ensure they are getting a fair deal on the property. It is critical for your employees to work closely with their real estate agent or attorney to schedule these inspections and appraisals in a timely manner and carefully review the results to make an informed decision about the home purchase. |
 |
Receiving Final Mortgage ApprovalOnce an offer has been accepted, the final mortgage approval process begins. This stage involves a thorough review of the employee’s financial situation and the property to ensure that the mortgage is approved. The lender will verify income, employment, credit history, and conduct a final appraisal of the property if necessary. |
| Once everything checks out, the lender provides a commitment letter outlining the mortgage terms and any remaining conditions that must be met before closing. |
 |
ClosingThe closing is the final step in the home buying process, during which ownership of the property is officially transferred to your employee. During the closing, the employee will review and sign necessary documents, pay any associated costs, and complete the transaction. |
| It is important for employees to review all documents carefully and ask any questions they may have before signing. The seller will typically sign documents related to the transfer of ownership, including the deed and any necessary disclosures about the property. Once the paperwork is signed and the funds have been transferred, the sale is considered complete, and the employee officially becomes the new owner of the property. |
Whatever the financing needs of your transferees may be, Sirva Mortgage is here to help. With over 30 years of focus and expertise in relocation mortgage lending, we understand the important role home financing plays in the relocation process. Please visit our mortgage website to learn more or contact us at MortgageClientServices@sirva.com.
Smart. Helpful. Human. Responsible.
Sirva Mortgage is an equal opportunity lender engaged in the business of originating residential mortgage loans. We are licensed or authorized to conduct mortgage loan origination in all 50 states plus the District of Columbia. Sirva Mortgage is not a depository institution and does not act or represent itself as a full-service bank. Reference to the term “mortgage banker” is a common, accepted industry term referring to companies engaged only in the business of making mortgage loans. Various state laws and regulations and our license type(s) in various states refer to us as a mortgage lender, mortgage banker or mortgage broker. For our Privacy Policy and Affiliated business relationships disclosures please visit https://mortgage.sirva.com/about/about-sirva-mortgage. Please see the complete required license disclosure below. Call 800-531-3837 for more information.
Sirva Mortgage, Inc. NMLS ID #2240, for licensing information, go to: www.nmlsconsumeraccess.org. Main Office Address is 6200 Oak Tree Blvd., Ste. 300, Independence, OH 44131; Telephone: 1-800-531-3837. We are licensed by/as (among others): Arizona Licensed Mortgage Banker, License #0901430; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, License #4130944; Georgia Residential Mortgage Licensee #6221; Illinois Residential Mortgage Licensee #MB.0004037 - Illinois Department of Financial and Professional Regulation (IDFPR), Division of Banking, Mortgage Banking Section, 555 West Monroe Street, Suite 500, Chicago, IL, 60661, (312) 793-7090; Kansas Mortgage Company License #MC.0025314; Massachusetts Mortgage Lender License #ML2240; Nevada Licensed Mortgage Banker License #1043; Licensed by the N.J. Department of Banking and Insurance; Licensed Mortgage Banker – NYS Banking Department; Oregon Mortgage Lending License #ML-186; Rhode Island Licensed Lender; Texas Mortgage Banker Registration #2240; WA Consumer Loan Company License #CL-2240.
This is not an offer of credit. This is not an offer to enter into an interest rate lock-in agreement nor is this notice of loan approval. Mortgage approvals are rendered based on individual credit qualifications.