Today most Americans have real estate that was purchased using a mortgage, which indicates that the mortgage in the United States is one of the most popular banking products. This is mainly due to the fact that the level of mortgage rates in this country is considered one of the lowest.
Now the mortgage rate in the United States in most banks is from 2.5 to 4% per annum, and the loan term is 15 or 30 years. Turning to the Bank, borrowers can count on the opportunity to purchase almost any liked housing, as well as take advantage of programs offering mortgage refinancing.
Mortgage in the US
Features of mortgages in the US.
The main feature of mortgages in this state should be attributed to a more dedicated attitude of banks to real estate, which will be purchased through a mortgage loan.
If in our country banks are reluctant to issue loans for housing under construction, the American credit organizations are ready to provide a loan for the obtaining of real estate under construction, and for the purchase of finished housing. Another feature is that most banks offer borrowers a loan with a floating interest rate, the amount of which will change periodically.
The use of this method allows banks to earn more, but gives borrowers a number of inconveniences, since the size of the monthly payment is constantly changing and not always downwards.
Also, the features of the mortgage must contain the ability to account for the borrower’s profits not only in the form of salary and lease payments, but also individual pension reserves and dividends.
Is it possible to issue a mortgage in America to foreign citizens?
Unfortunately, us mortgage banks practically do not lend to foreign citizens. As a rule, to buy real estate on mortgage in this country will be able only to customers of large foreign banks, ready to offer such a service to their customers, who already have open accounts with them at the place of their registration.
Such borrowers must be prepared to submit letters of recommendation from other credit institutions, a certificate from the credit Bureau, and in some cases a green card or a foreign citizen’s registration card in addition to the standard papers required for a mortgage.
Requirements for documents may vary significantly from Bank to Bank. Based on the information received, the Bank will make a decision on lending to the borrower or refusal to provide a mortgage loan.
So, mortgage in America makes it easy to buy real estate, both at the construction stage and in the secondary markets, and banks take minimal interest for the use of borrowed funds. At the same time, it will be quite difficult for foreign citizens to use a mortgage, because there are practically no mortgage products for foreigners.
The typical price of a loan for
house in the United States is, depending on many conditions, 3.5-7% per annum
In America, there is an initial payment for the purchase of real estate usually 30-50% of its worth. In a number of cases, you are able to do without the first fee, but it usually increases the rate of the loan.
To obtain a mortgage you will need the next papers:
– passport (or ID card/driver’s license);
– income certificate;
– credit history;
– one or more letters of recommendation from banks, which is confirmed by not less than two-year cooperation;
– statement from the account of finding on it the amount that will be enough to make the annual payment on the loan;
– a copy of the contract of sale of real estate.
This list is not fixed, as each mortgage loan is issued individually. The application for the receipt of money is considered in the period of 30 days.
An optional but important procedure may be to check the condition of the house. For 250-500 dollars will be made the monitoring of the object, which will allow you to identify all the defects of housing. By purchasing a mortgage, you need to return to the Bank from 700 to 1000 dollars per month. Do not forget about utilities – it’s a few hundred dollars.
The mortgage can be refinanced at any time for a more profitable loan with a lower interest rate.
When deciding to buy real estate in the United States, it is necessary to take into account the remoteness of this country from Russia. Getting a visa, flight and other formalities can cost several thousand dollars. This purchase is justified only for the purpose of migration or long-term lease of the purchased property.