How to get a housing loan after immigrating to the United States

After immigrating to the United States, China people want to buy a house. How can they get a house loan in the United States? The following is your analysis!

First of all, let's find out, as a foreigner, are you eligible for a loan?

Is it higher for foreigners to apply for mortgages in the United States?

In the United States, the core principle of mortgage loan issuance is that the collateral value is sufficient, and the applicant has a good reputation and a continuous source of income, which is not directly related to the applicant's identity and nationality.

As an overseas person, the requirements for obtaining a mortgage in an American bank are relatively high. If you have relevant deposits, investments or other active accounts in the bank, or if the work visa holder has a long-term and stable income and expenditure record, loans in the United States are "extra points"!

At present, in most states of the United States, foreigners (without American green card) can purchase American real estate through loans, but the down payment is usually 40-50%, and because there is no American credit record and proof of income source, lending institutions will additionally require lenders to pay interest higher than the market level 1%-2%.

Green card holders have lower requirements for applying for mortgage in the United States?

As permanent residents, that is, green card holders, they also need to establish relevant personal credit records in the bank before they can apply for housing loans. Different banks have different loan 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, the operation of buying a house with a loan is very different. It is much easier to get a loan as a foreigner before obtaining the status. Once they get the status, it is almost impossible for new immigrants to get a mortgage, because some hard requirements, such as tax return records, credit and income, can't be met at all.

American mortgage application process

First of all, understand the process of applying for a mortgage in the United States. The process is similar to the domestic mortgage application process, which can be roughly divided into:

Choosing a lending institution-obtaining the prequalification of the lending institution-examining the applicant's qualification by the lending institution-real estate appraisal-lending by the lending institution.

Specifically divided into the following seven steps:

(1) Consult the lending institutions that can provide you with loans.

(2) After comparing the interest rate and the term, determine the lending institution that can provide you with the most suitable for your affordability.

(3) Obtain the prequalification of the lending institution that accepts your financial and identity information.

(4) According to the instructions of the lending institution, provide all information about income, identity and other requirements for review.

(5) The mortgage company conducts real estate appraisal to determine the value.

(6) employees who handle mortgage loans.

(7) loan transaction package fee settlement institution

Types of American mortgage loans

If you meet the conditions of buying a house with a loan, then you can consider the type of loan.

The usual loan period in the United States is 30 years. You can also choose 5 years, 7 years, 10 years, 15 years, 20 years and 40 years according to your repayment ability.

At present, the average loan interest rate in the United States is around 4-5%, and there are two main types of loans, floating rate loans and fixed rate loans.

(1) floating rate loan (ARM)

Usually divided into: 3/ 1, 5/ 1, 7/ 1ARM, which means that the interest rate is fixed in the first three years, five years and seven years, and then the interest rate fluctuates according to Libor and other indicators.

For example, on 2011116, I bought a 300,000-dollar house in Los Angeles, California. I made a down payment of 40%, applied for a loan of 5/ 1ARM, and the loan interest rate for the first five years was 4.1. Starting from the sixth year,

(2) Fixed-rate loans

Common fixed-rate loans are 15 or 30 years, and the annual interest rate is fixed.

For example, on 2011116, I bought a house of $300,000 in Los Angeles, California, with a down payment of 40% and applied for a 30-year fixed loan interest rate of 4.799%-5.540%.

The interest rate of short-term (3-5 years) floating rate loans is relatively fixed, and the interest rate is about 0.5- 1% lower. However, in the long run, the interest rate of floating rate loans may rise sharply. Therefore, for short-term investors, floating interest rate loans are more worthy of consideration.

For buyers who pursue stability and have low long-term risk tolerance, a fixed interest rate is more appropriate. These two kinds of loans have their own advantages and disadvantages, and buyers can do it according to their own financial situation.

How do foreigners approach American lending institutions?

(1) loan broker

More than half of housing loans in the United States are completed through loan brokers, who act as intermediaries between borrowers and borrowers. The loan broker can negotiate the fees directly with the buyer, and can achieve the lowest loan interest rate and the least fees for you. Therefore, it is a good choice to find a "reliable" loan broker for people who are not familiar with American loan purchase affairs. However, professional services will also charge a certain fee, and loan brokers usually charge 1% of the loan amount.

(2) Commercial banks

Commercial banks such as Citibank and Bank of America offer very competitive loan interest rates. If you have a checking account or a deposit account in these businesses, you can also enjoy loan concessions.

(3) mortgage bankers

Mortgage banks can provide loans for you on behalf of one or more banks, but such loan services are limited to the customers of these banks. For most China investors, consulting American commercial banks with branches in China is the main way to borrow money.

When contacting American mortgage agencies, you must discuss with employees who have been trained in foreign mortgage loans. When you are in contact with mortgage employees of different banks in the United States, find out the interest rates, qualification requirements and regulations applicable to foreigners. Discuss with a number of lending institutions and choose the bank that can provide you with the best interest rate for the loan you need.

Preparation before the loan

Once the best lending institution is found, the next step is to obtain the prequalification for applying for a loan. This is the first step before the loan process begins, that is, after the first contact with them.

1. Prepare materials

To apply for a mortgage in the United States, you need to provide a lot of materials, including recent payroll, bank statements, tax bills, identity documents and other materials. Preparing these materials in advance can save a lot of time.

2. Loans

Loans can generally be entrusted to your real estate agent, or choose a professional loan broker (mortgage/loan broker). Because of my major, I am familiar with banks, so it is convenient to approve loans smoothly and quickly.

3. Loan application

Choosing a good real estate agent is very important, which will make your buying experience relaxed and pleasant. A good real estate agent is not only experienced, well-informed and aware of the current market situation, but also can help you check.

Review loans

When submitting a loan application, you are advised to try your best to choose an American bank or an international bank, such as HSBC, uob, Cathay Pacific Bank and East-West Bank. No matter whether buying a new house or a second-hand house, the services provided by brokers for buyers are free, and the commissions of general real estate agents are paid by sellers.

In the above steps, the broker will ask for your personal information, including income and debt. They will decide the loan amount you can afford according to their loan standards (different from family to family).

Pre-qualification helps to know whether you are eligible for a loan and the amount you can borrow. This step will also help you to know whether the lending institution is willing to provide you with loans.

Confess your mortgage requirements to the lender, including how you intend to use the property. If it is dishonest, even if the loan is passed, the lending institution has the right to demand immediate full repayment or take away the property through legal auction.

Generally speaking, banks will consider the following seven main factors to comprehensively evaluate whether to give applicants "pre-qualification" qualification:

(1) Whether there is a stable source of income;

(2) whether there is a stable job in the past two or three years;

(3) Whether the current income is reliable;

(4) Whether the payment record is good;

(5) Whether there are not many long-term loans, such as loans to buy a car;

(6) Whether there is a deposit;

(7) Whether it has the ability to pay the monthly payment and increased expenses.

Among them, the down payment needs to be kept in the name of the buyer for a certain period of time under the regulations of each bank, so it is necessary to open an overseas account as soon as possible!

Work in the process of loan

1. Evaluation of reserved houses.

Lending institutions or banks need to send special appraisers to evaluate the houses that applicants want to borrow. The appraiser will call in advance to make an appointment.

2. Lock in the interest rate

Lock the loan interest rate (lock the interest rate), and the loan interest rate fluctuates every day. Once the interest rate is locked, it will remain unchanged, and the interest rate will be guaranteed during the locking period. Generally, the lock-up period is 1 year, 3 years, 5 years, 10 year, 15 year and 30 years. The longer the lock-up period, the higher the interest rate.

3. Supplementary materials

Provide supplementary materials (conditional approval). After the loan materials provided are approved, the lending institution will ask the customer to fill in the incomplete or irregular parts of the submitted materials in time or provide the materials again.

In the above links, once the mortgage loan staff recognizes your qualifications, the next step is to review. Lending institutions need to review:

(1) proof of income: employer's letter or company business license.

(2) Proof of deposit: the bank statement of the last month requires a down payment.

(3) Identification: valid entry visa and passport.

(4) Purchase contract

(5) mortgage application

(6) Asset certificate: your total assets.

(7) Credit history

Work in the process of loan

If all goes well, you can approve the loan. From contacting lending institutions, to bank pre-examination, to qualification examination, and finally to lending, every link needs great care.

1. Sign the loan document.

Sign the final formal loan agreement and documents of the bank.

2. Bank loan financing

When all the conditions of the lending institution or bank are met, the loan can be issued.

completion

It takes a long time for overseas buyers to approve loans, usually more than three months. It also requires that the bank account for the first payment in the United States has been full for a certain period of time. If a customer needs a loan to buy a house, these things must be arranged in advance to make the overseas purchase of the house go smoothly.

The application process of housing loan seems complicated, but the real operation is not necessarily complicated. As long as sufficient, effective and true information is provided according to the requirements of the bank, it is not difficult to borrow money to buy a house in the United States.