Tips for foreign house buyers


United States, 29th September: Are you looking to buy a home overseas shortly? Then, here are some vital tips to give you all the related information regarding buying real estate overseas—
 

United States, 29th September: Are you looking to buy a home overseas shortly? Then, here are some vital tips to give you all the related information regarding buying real estate overseas—

The US seems to be becoming a favorite spot for buying real estate by several foreigners, especially Canadians.

According to the data from the National Association of Realtors, nearly 23 percent of foreigners buying homes in the US are Canadians.

The first important thing to be kept in mind by every foreigner looking for purchasing a house in America is that the process is almost the same for every buyer including a foreigner. This includes spotting a house you need to buy, making an offer along with a deposit, getting a mortgage, making appraisals, paying for all inspections.

If you are making the payment in cash, the whole process is quite simple. Things appear to be taxing only when you require a mortgage for financing your new home.

If you have any diplomatic immunity, then you are suggested to opt for getting a house on rent since the US laws do not allow lenders to redress in case any foreign buyer defaults in payments.

And if you do not have any diplomatic immunity, then you need to get your documents in order. You are likely to be asked by lenders to provide an employment history of two years along with a credit history either in America or in any other nation. In addition, you will be required to provide proof that you are a legal resident of the US for a minimum period of 2 years.

If your period of stay in the US has been less than 2 years, then you can provide two bank references.

Although, no documents are needed to prove such things, however, it is quite likely that lenders will ask you to provide various types of documents for getting the required loan.

Also, you will be asked to show your US passport, a valid US visa and the US work permit.

Those looking to get a big amount of loan for buying posh property in the US will be asked to provide a minimum of 25 percent down payment and a relatively higher rate of interest than charged from any US citizen.

Meanwhile, if you are seeking a conforming loan with guarantees from government-sponsored agencies, then the rules including fees, interest rates etc. will be the same as for US citizens.