In the USA a 4-5 room house in most states is sold for $60,000-$150,000. Americans do not have the opportunity to pay the bills right away, so in 90% of cases they take out a mortgage for a period of 5 to 30 years.
The average cost of a mortgage loan in the United States is, depending on many terms, 3.5-7% per annum. If a resident of another country decides to issue a loan, then due to the emerging risk, the rate may be increased by 1-2%. It should be noted that in this country there are two types of rates: floating (can change every few years) and fixed (set for the entire period of payments). Loans at floating rates are cheaper, but more risky than at fixed rates. The average borrowed funds are $ 100,000.
In America, there is an initial payment for the purchase of real estate, which is usually equal to 30-50% of its price. In some cases, the first payment can be dispensed with, but this usually increases the cost of the loan.
To issue a mortgage loan, you will need the following documents:
- ID card / driver’s license;
- income statement;
- credit history;
- one or more letters of recommendation from banks, in which at least two years of cooperation are confirmed;
- an extract from the account about the amount on it, which will be enough to make an annual payment on the loan;
- copy of the real estate purchase and sale agreement.
This list is not fixed, since each mortgage loan is issued individually. All documents must be translated into English. An application for receiving money is processed within 30 days.
Also, a foreigner buyer of American housing will have to spend money on its assessment (up to $ 500), processing documents submitted to the bank (up to $ 400) and real estate insurance (1-2% of its value). An optional but important procedure may be to check the state of the house. For $ 250-500, the object will be monitored, which will reveal all housing defects. By issuing a mortgage loan, you need to pay the bank back from $ 700 to $ 1,000 per month. Don’t forget about utility bills – that’s a few hundred dollars more.
The mortgage can be refinanced at any time into a more profitable loan with a lower interest rate.
When deciding to buy real estate in the United States, it is worth considering the remoteness of your country if you are a non-resident. Getting a visa, flights and other formalities can cost several thousand dollars. This purchase is justified only for the purpose of migration or long-term lease of the acquired property.