Qualifying with an offer letter
If you have not started the new job yet, most lenders accept a signed offer letter or employment contract in place of pay stubs, provided the job starts within 60 to 90 days of closing and the income is non-contingent. The letter must show your title, start date, and guaranteed compensation. Bonus or commission-heavy offers get more scrutiny; base salary is what underwriters trust.
Relocation packages help too. Lump-sum relocation payments can supplement reserves, and employer-paid temporary housing keeps your debt-to-income clean while you house-hunt. Document every piece of the package.
What happens to your current home payment
Your old housing payment counts in your debt-to-income ratio unless you can show it is going away. If you have sold and closed, it drops off. If it is listed, some lenders exclude it with 6 months of reserves and a listing agreement, but many still count it. If you are keeping it as a rental, you need a signed lease and often proof of the security deposit before the lender credits the rental income.
The cleanest structure is selling first, but that is not always practical. Bridge loans cover the gap: they fund the new purchase using equity in the old home, then you pay off the bridge when the old home sells.
The trailing spouse problem
When one spouse moves first, lenders qualify on whoever’s income is documented. If the trailing spouse is quitting to move, their income generally cannot be counted unless they already have a job lined up in the new city with an offer letter. Plan the application around the relocating earner’s income alone, and treat the second income as a bonus if it materializes.
Remote workers relocating by choice
Voluntary relocations are simpler: if your job is fully remote and your employer confirms in writing that your role and pay continue regardless of location, most lenders treat it like any other purchase. Get that letter early. If your employer has any return-to-office policy that could affect your role, underwriters may ask about it.
Programs that fit this situation
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
Jumbo Loans
A jumbo loan is a mortgage larger than the FHFA conforming loan limit for your county, used for higher-priced homes.
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.
Cash-Out Refinance
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash, commonly up to 80% of your home’s value on a primary residence.
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
FAQ
Can I buy a home before starting my new job?
Yes. Most lenders accept a signed offer letter showing your title, start date (within 60 to 90 days of closing), and guaranteed pay. The offer cannot be contingent on anything except standard background checks.
Does my current mortgage count if I am relocating?
Yes, until it is resolved. A closed sale removes it. A listing sometimes lets lenders exclude it with extra reserves. Converting to a rental requires a signed lease first. Otherwise it stays in your debt-to-income ratio.
What is a bridge loan for relocation?
A short-term loan secured by your current home’s equity that funds the down payment (or full purchase) of the new home. You repay it when the old home sells. It solves the own-two-homes-at-once problem without contingent offers.
Can we count both incomes if my spouse is also moving?
Only with documentation. If your spouse has an offer letter for the new city, their income can count. If they are quitting without a new job lined up, lenders will not count it.
I work remotely and am moving by choice. Is that easier?
Usually yes. With a letter from your employer confirming your remote role and pay continue at the new location, lenders underwrite it like a standard purchase. Get the letter before you apply.
Should I sell first or buy first?
Selling first is financially cleaner but logistically harder. Buying first with a bridge loan or contingent offer is smoother but costs more. In competitive markets, non-contingent offers win, which pushes relocating buyers toward bridge financing.