The United States of America has a sound housing market and there are no restrictions for foreigners willing to buying a property in this country. There is more than one reason behind people, hailing from different countries, willing to establish a base in America. The country is viewed as an eternal “land of opportunity”. Plus, there is the geographical diversity which has its own appeal among emigrants—right from the sunny Florida to the snowy Alaska and from the serene Westport to the upmarket New York City— the versatility of the country is often considered to be unmatched. For those of you all willing to buy a property in the US, here is a glimpse of some of the fundamental aspects of US mortgage which you should be aware of. So, please continue reading.
Factors to consider closely while you are buying property in the US
As already mentioned above, there is no restriction for foreign buyers to settle for a property in the US. However, you can expect to grab a better deal by acquainting yourself with the basics defining US mortgage. Here we go.
Beware of the usual and the red tape costs
The costs of US mortgage loans vary in accordance with various factors including:
The type of loan availed by you
The State and Federal Laws
Each and every factor included in the agreement
If you are living in Canada and looking for a property in the US then you should be prepared for providing much more documentation than what would be typically needed for a Canadian mortgage. This is because of the stringent regulations governing US housing market. The period extending from the initiation of the application to the closure of the deal might as well extend to 45 days.
Consider consulting a mortgage broker
It would be great if you are consulting a mortgage broker as they can guide you through US mortgage requirements which vary from state to state. Selection of a realtor, who will help you in the purchase process, is essential as well.
The mortgage broker will particularly help you when it comes to understanding the mortgage requirements varying between different states. You will be duly guided with an estimate of the amount you can afford to spend on the property and you may just as well be more comfortable in judging the credibility of the sellers and the agents when it comes to cracking a serious deal. The US mortgage companies mostly ask non-US internationals to pay down 20% of the total loan sanctioned.
Experts opine that though a part of the housing market in the US is still reeling under recession, prices are surely coming up to normal levels slowly. Those of you all coming down to the US might as well have to spend $10,000 to $16,000 in rent. So, having a place of your own (in the US) can definitely help you diversify your portfolio.