When global asset allocation has become a trend of investment and financial management, the United States, the world’s economically developed superpower with high-quality education, has become a “hot spot” in the eyes of overseas investors.
But not all people will choose to buy a house with one-time cash payment. Many people still choose to borrow money to buy a house in the United States. In addition to the reason that some investors are unable to pay in full, the ultra-low loan interest rate in the United States is also an important incentive.
So, how can Chinese people get loans in the United States? Let’s share the knowledge of American house purchase loans.
Is the condition for foreigners to apply for housing loans higher in the United States? — very normal!
In the United States, the core principle of mortgage loan issuance is that the collateral value is sufficient, the applicant has good reputation and continuous source of income, which is not directly related to the identity and nationality of the applicant.
As an overseas person, the requirement of obtaining housing loan in Bank of America is relatively high. If there are relevant deposits, investments or other active accounts in the bank, or people with work visa have long-term stable income and expenditure records, these are “bonus points” for loans in the United States!
At present, in the vast majority of states in the United States, foreigners (without U.S. green card) can buy U.S. real estate through loans, but the down payment is usually 40-50%, and because they have no U.S. credit record and income source certificate, the lending institutions will require the lender to pay an additional interest of 1% – 2% higher than the market level.
Green card holders in the United States to apply for housing loans lower conditions? — not necessarily!
It is understood that as a permanent resident, that is, a green card holder, it is also necessary for the bank to establish a relevant personal credit record before it can apply for a house purchase loan. Different banks have different lending policies and conditions, but as long as they meet the requirements, banks are still willing to lend to overseas applicants with higher comprehensive qualifications.
Before and after the green card, or more accurately, before and after the first tax return, there is a big difference in the operation of the loan to buy a house. Before obtaining identity, it is much easier to borrow money as a foreigner. Once they have obtained their identity, it is almost impossible for new immigrants to obtain housing loans, because some rigid requirements can not be met, such as tax returns, credit, income, etc.
Preparation before loan
In general, banks will consider the following seven main factors to comprehensively evaluate whether to give the applicant the “pre qualification” Qualification:
- Whether there is a stable source of income;
- Whether there are stable jobs in the past two or three years;
- Whether the current income is reliable;
- Whether the payment record is good;
- Whether there are not many long-term loans, such as loans to buy a car;
- Whether there is a deposit for down payment;
- Whether it has the ability to pay the monthly contribution and the increased cost every month.
Among them, the down payment needs to be deposited in each bank’s name for a certain period of time, so it is necessary to open an overseas account in advance!
Work in the loan process
- Appointment appraisal
Loan institutions or banks need to send a special valuer to the house the applicant wants to loan. The valuer will call in advance to make an appointment.
- Lock in the interest rate
Locked rate, which fluctuates up and down every day. Once the interest rate is locked, it will not change. Within the locked period, the interest rate will be guaranteed. Generally, the lock-in period is 1 year, 3 years, 5 years, 10 years, 15 years and 30 years. The longer the lock-in period, the higher the interest rate.
- Supplementary materials
Provide supplementary materials (conditional approval). After the approval of the loan materials provided, the lending institutions will require the customers to supplement or provide new materials in time for the incomplete or non-conforming parts of the materials submitted by the customers.
In the above link, once the mortgage staff approves your qualification, the next step is to audit. Lenders need to review:
Proof of income: employer letter or company business license
Certificate of deposit: you need to see the down payment in the bank statement of the latest month
Proof of identity: valid entry visa and passport
House purchase contract
Application for housing loan
Proof of assets: your total assets
Work in the lending process
If all goes well, the loan can be approved. From contacting the lending institutions to the pre examination of banks, to the qualification examination, to the final lending, every link needs to be very careful.
- Sign loandocuments
Sign the final formal loan treaty and documents of the bank.
- Bank lending
When all the conditions of the lending institution or bank are met, the loan can be made.
Overseas home buyers loan approval time will be relatively long, generally need more than 3 months. But also requires the down payment in the United States bank account has been full for a certain period of time. If there is a need for loans to purchase customers, we must arrange these things in advance, in order to make overseas home smoothly.
The application process of house purchase loan seems very complicated, but the real operation may not be very complicated. As long as sufficient, effective and true information is provided according to the requirements of the bank, it is not very difficult to buy a house with loans in the United States.