Buying a home in America may not be easy for many people, especially immigrants or non-US citizens.
But with more information about this process, finding your special offer can be made easy.
In this article, we discuss the most important information about the real estate market in the United States and how to buy houses there.
Important information about buying a home in America
The term global market is more pronounced in the US, especially when it comes to real estate.
While, according to the National Association of Realtors in America, foreigners or international buyers buy more than 6% of real estate sales in the United States annually.
Whether you’re an investor, retiree, or first-generation immigrant living in the United States, buying real estate in an unfamiliar market can be intimidating.
But as mentioned before, in this guide we will learn what will help you get started.
However, remember that this information is not a substitute for the expertise of real estate agents, attorneys, mortgage brokers and other professionals that you may need to consult.
The first step: determine the reason for buying a house in America
Before you begin your property search, it is important to think early on about how you will use it once the deal is closed.
Should it be a holiday home?
Will it be for professional residency purposes?
Home for the family or for the kids while studying in the US?
Will it be for investment?
Or maybe a long-term stay?
In any case, you should know that buying real estate in the United States does not confer any rights and privileges on foreign owners regarding their residency or immigration status.
But by defining the main purpose of your property and how long you intend to own it, you can provide your real estate agent with information to help you with your search and purchase.
How does the US housing market work?
The manner in which real estate transactions are conducted in the United States may differ from your country of origin.
In fact, every state in the United States has its own set of regulations regarding the purchase of real estate, including the type of purchase agreement used, how the sale is conducted, and tax fees.
But there are some important real estate practices in the United States that you should know:
In the United States, real estate information is shared by agents using multiple listing services, and consumers can access the same information through popular real estate websites like Zillow.
Agents in the US receive the commission from the seller, so buyers don’t have to pay anything to buy or search a home in the US.
To operate in the United States, real estate agents require business licenses. Admission laws differ from state to state regarding the level of education required and the type of exams.
The licensing system is designed to ensure real estate agents are qualified to guide consumers and are proficient in property research, appraisal and financing.
Foreign buyers also need to understand many things like exchange rates, international wire transfers, banking regulations, and multinational taxes.
Buying a house in America with the help of real estate agents
Foreign buyers in particular should take the time to find qualified, experienced professionals to guide them through the property buying process.
There are some brokers who are already completing additional courses in order to obtain the title “International Real Estate Professional”.
And if you are not fluent in English or prefer to speak in your native language, choose the agents, lawyers, inspectors and bankers with whom you can communicate in your native language so that you do not receive incorrect information due to misunderstandings.
While it is possible to have copies of the property purchase documents translated, it is likely that you will need to sign the English copies when it comes time to close the deal.
Find the right financing
Eligible foreign buyers who are willing to put down a down payment of between 30% and 40% can obtain home financing.
Many banks require foreign buyers to deposit a specified amount ($100,000 or more) with the bank, while others set credit limits of between $1 million and $2 million.
You may also be required to submit your bank statements for at least three months.
favorBefore applying for a mortgage in the United States, you must first build your credit and maintain a good financial profile.
You can begin to build this balance by opening bank accounts, obtaining and using credit cards, and paying off debt on a timely basis.
You must also state all of your income on your tax return.
Banks use this income information to determine how much money they can loan you to buy a home.
When it comes time to apply for a mortgage, it’s important that you work with major global banks.
These lenders have the experience and ability to verify your creditworthiness in other countries
He will also guide you through the process of buying real estate in the USA.
What to expect when you first meet your real estate agent?
Now is the perfect time for you to explain to your agent exactly what type of property you are looking for and how much you are budgeting for.
This is also a good time to explain to your agent how the home buying process works in your country and ask questions about how it differs from the US market.