Requirements to Buy a Home: Process, Helps and MORE

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After years of living paying rent it is natural that many citizens, Americans and foreigners alike, begin to wonder What are the requirements to buy a house in the United States?

In order to guarantee your well-being and that of your family, and to be able to start forming your own home, today we will show you everything you need to know to acquire your own home in USA.

What are the requirements to buy a house in the United States?

The Requirements to Buy a Home in the United States they consist of:

  • Have the status of resident within the country.
  • Present your identity document.
  • Have all the documents in order, mainly your residence visa.
  • Demonstrate a favorable credit history in USA, as well as in the case of your income and bank accounts.
  • Prove that you have 30% or 40% of the initial value of the purchase to ensure the initial payment.
  • Deliver account statements and credit and bank references.
  • Be the holder of a social security number.
  • Show:
    • Proof of your tax returns.
    • Labor certificate issued by your current employer.
    • Form W2.
    • Personal balances.
    • Bank statements of at least the six months prior to the request.
    • Proof of residence in the USA for the past two years, at least.

Note: Keep in mind that Requirements to Buy a Home They will depend a lot on the bank and the state in which you are, due to the different laws that govern their regulations. Likewise, it is important that you do a study of the benefits offered by each entity and choose the option that best suits you.

In addition to the general information about the home, you should be sure to research and define the payment estimate that is going to be added due to insurance. For this, you must evaluate insurance options against disasters and against third parties, as well as rights of front, maintenance or condominiums.

How is the proccess?

Once you gather the Requirements to Buy a Home in the United States you must define other issues just as important. Investing a home in the American territory is a remarkable decision for which many things must be clear.

First, What is the type of credit you want to acquire? Different entities will offer you different options. Perhaps some have lower interest rates or their monthly payments and installments are more adapted to your possibilities, without exceeding the budget you have at the moment. You must study this first factor to understand what decision to make when you have the options in front of you.

During the process of buying a house you also have to consider these aspects:

  1. Hire a licensed real estate agent or broker. The advice of a professional certified in the USA will allow you to know all the necessary information about your options and Requirements to Buy a Home.
  2. Find financing that is safe and accessible according to what you need and know that it is convenient for you.
  3. Be a participant in price comparisons, mainly in the area that you have already chosen as the ideal one, so that you can make the best decision.
  4. Explore the houses that are presented to you. You must be able to guarantee that the home complies with all the regulations stipulated in your contract, so check thoroughly, and if possible, get a licensed inspector.
  5. List the services near the house, such as public transport, grocery stores, schools, hospitals and clinics, among others.
  6. Check your home appraisal and start looking for title insurance.
  7. Gather all the regulatory documentation and stay tuned during each step of the transaction.
  8. Remember all the taxes that must be paid when buying a home. To do this, you can always contact a tax attorney who is an expert on the subject, especially in your state.
  9. Ready! After all this process (exhaustive but necessary) you will have completed all the Requirements to Buy a Home in the United States.

Government Aid to Buy a Home

The United States Government offers different programs that work as Help to Buy a Home. In this way thousands of citizens get support when buying a home for the first time.

The main Government Aid to Buy a Home will be mentioned below:

FHA Home Loans

This program is regulated through the Federal Housing Administration. It works as a mortgage credit facility offered by the State for each first purchase of a house by a citizen, in a simple and accessible way.

The Federal Administration is not the one who grants the credits. However, it is responsible for guaranteeing authorized lenders the payment of their solvency, in case the owners cannot be responsible for the loan payment.

Its conditions apply to buyers who attend financial institutions in their states, provided that:

  • They do not have a good credit history.
  • They do not qualify for a traditional mortgage offered in your state.
  • That the funds they have do not exceed 3.5% an initial fee.

HUD Homes

The homes granted through the United States Department of Housing and Urban Development they work in a similar way to the previous case.

In this case, citizens who cannot afford to pay a secured mortgage can choose to name this entity as the owner of the house.

Depending on the credit score, the possibilities to access the mortgage and the amount deposited for the down payment, there are more possibilities that the applicant will be elected to be part of this proposal.

Additionally, those who have a mortgage insured with the Federal Housing Administration may also be included in this program.

Housing choice vouchers

This option is dedicated to senior citizens, disabled people, and low-income families. Through this proposal, these residents will be able to access quality housing at a private level.

The type of housing For which you can choose in this program are single-family units, houses and apartments in your state, as long as the following requirements are met:

  • Be part of one of the groups mentioned above.
  • That the net family income does not exceed 50% of the median income of the metropolitan area or county in which the dwelling is located.
  • Deliver all the information regarding the members, income and assets of the members of the family group.

Veterans Home Loans

These programs are managed by federal authorities, mainly guaranteeing housing to those owners who want negotiate the net price of the house provided that the payment is made in cash.

As the name suggests, they are dedicated to:

  • Veterans.
  • Active duty service members still eligible.
  • Active members of the Reserve.
  • Members of the guard who have served at least six years in the reserve.
  • Surviving spouses of deceased members.

To learn about other programs Government Aid to Buy a Home you can click here.

Mortgage Loans to Buy a Home

The Mortgage Loans to Buy a Home They are delivered by endless entities. From mortgage brokers or banks, to your own bank, through real estate agencies and cooperatives, even online entities!

The market for Mortgage Loans in the United States it is immense, so citizens are forced to compare and evaluate costs and institutions alike.

Two fundamental types of mortgages operate in this country, which are:

  1. Mortgages fixed rate, whose interest is maintained from the moment the loan is granted and must be paid during the next fifteen, twenty or thirty years.
  2. Or the mortgages of adjustable rate, which have an interest rate that can fluctuate for as long as the mortgage is held.

If you want to learn more about how the Mortgage Loans in the United States, enter this link.

Buying a Home in the United States As a Foreigner

Like all American citizens, foreigners who begin their lives in the USA They seek to establish themselves in the safest way possible.

Of course, this is an arduous task which requires having the time, organization and effort, especially if you are looking for financing. But don’t give up! Your ideal home may be possible, and with much more ease than you think.

The Requirements to Buy a Home in the United States as a Foreigner are:

  • Have your legal immigration status and up to date. It is not necessary that you have permanent residence, as long as you have a tourist visa you can choose a vacation home.
  • Your valid passport with a copy that must contain your visa.
  • A proof of identity issued by a public entity that indicates your personal data. This must contain your names and surnames, identification number, address, the activity you do, your net income in US dollars and your complete contact information.
  • Your labor certificate, in case you are a dependent worker in USA, which must contain your net income in US dollars and position, level and seniority under the same employer.
  • A declaration of origin of funds according to what you use as a guarantee of your credit, which must be guaranteed by your balances or bank statements within the previous six months.
  • A letter of recommendation from a bank in your home country, depending on the banking institution.
  • Preferably, the advice of a real estate agent, so that you have complete knowledge of each stage of the process.
  • The payment of taxes corresponding to the purchase of the home.

Advice

Buying a home it is not a decision to be made lightly. The investment is immense, whether you pay in cash or with the help of a home loan. Therefore we will give you some advice so you know how to proceed without problems!

  1. Even if you are a foreigner, buying a home in the United States does not take away the power to acquire another home in other territories. So don’t worry!
  2. Carry out your own financial evaluation. Analyze your current situation very well. It is essential that you determine the capital you have available to make an initial installment and decide if you can with the payment on your own or it is better to opt for a loan.
  3. Consider the property’s increase in value and keep your expectations realistic. If in the future you want to sell this home, you must study very well what its average value could be in a period of five, ten or twenty years.
  4. Evaluate the profitability of your investment based on risk and term. Depending on your situation, it may be more convenient to continue paying rent, or perhaps the maintenance costs and taxes are not so high, so you have the possibility of having a home of your own. Know your possibilities before applying any plan.
  5. Know very well the area to which you want to move, so that your services, schools, transportation and other needs are covered in the closest possible proximity.
  6. If you’re short on funds, try to find a home that doesn’t need a lot of improvements or remodeling. Calculate long term!

Buying a home of your own is the dream of thousands of people throughout the American territory. Being able to ensure the protection, safety and comfort of your loved ones is one of the priorities of citizens throughout the country.

However, not many know what it takes to make this great investment. But now you do, thanks to this guide on the Requirements to Buy a Home in the United States!

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