30 September 2010

The deal is that for every foreigner who wants to buy a home, the home-buying process will be the same as for all American citizens: it’s necessary to find a home, make an offer, get a mortgage, pay for inspections and appraisals, and, finally, close.
If you pay all-cash, the process becomes much easier, but if you need to get a mortgage, certain problems may appear. For example, it will be impossible if you have diplomatic immunity.
In case you don’t have it, prepare for a lot of paperwork. The lenders will ask you to show at least a two-year history of employment and credit history in the U.S. or another country. In addition to it, you’ll have to prove legal residency in the U.S. for at least two years or provide two bank references instead. You should be prepared to show your passport, a valid visa, and work authorization (if you have it).
Moreover, if you want to get a jumbo loan, lenders may demand at least a 20% down payment and it’s quite possible that they will charge you a higher interest rate than for an American citizen. But if you’re applying for a standard loan, the conditions and requirements will be the same as for the U.S. citizens.
It’s a good idea also to investigate Federal Housing Administration loans. For example, down payments for borrowers with excellent credit story can be only 3.5%. But it’s necessary to act quickly. Today you’re not obliged to provide a Social Security number to borrow funds, but soon you may need to do it in order to qualify for a mortgage.
Getting a credit line or taking some equity out of Canadian property and then go and buy real estate in States becoming more and more popular among our borrowers. First of all it’s easier and many times it’s cheaper to get a mortgage in Canada.

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