{"id":910,"date":"2020-06-29T08:06:05","date_gmt":"2020-06-29T12:06:05","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=910"},"modified":"2024-04-25T23:20:30","modified_gmt":"2024-04-26T03:20:30","slug":"foreign-nationals-buying-u-s-real-estate-how-it-works-latest-quirks","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/foreign-nationals-buying-u-s-real-estate-how-it-works-latest-quirks\/","title":{"rendered":"Foreign Nationals Buying U.S. Real Estate: How It Works & Latest Quirks"},"content":{"rendered":"\n
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Many international buyers \u2014 often from Canada, China, Mexico, India or Great Britain \u2014 buy U.S. real property to offset the risk of their country\u2019s currency devaluation, or simply to diversify their assets. If you\u2019re a buyer from outside the United States, or a seller making an international sale, advance knowledge can help you navigate a few quirks in the process.<\/p>\n\n\n\n\n\n\n\n

What Are the Rules? Who Are the Experts?<\/h2>\n\n\n\n

Within the United States, each state has its own laws on how sales are conducted and closed, what contract provisions are and are not acceptable, and the qualifications of the professionals involved. There is some level of disclosure in nearly every home sale, because everyone who engages in or assists with a sale for at least USD $10,000 has to report<\/a> the activity to the U.S. government. <\/p>\n\n\n\n

When the typical home goes up for sale, it\u2019s entered into databases shared by brokers who use multiple listing services.<\/a><\/em> The general public can pull up the data, too \u2014 from\u00a0Zillow<\/a>, for example. Real estate agents<\/em> are the licensed brokers who guide buyers though the experience of house hunting, assessing the suitable homes, and locating suitable mortgage and title specialists. Look for an agent who has international sales experience and is familiar with your language.<\/p>\n\n\n\n

Who are the other specialists available? Real estate\nattorneys, although not required, can review a sales contract, oversee the\nreview of deeds and other documents, and advise on inheritance rights or other\nquestions. You\u2019ll need a mortgage broker, and your agent will be introducing\nyou to a title company. You\u2019ll likely encounter surveyors and appraisers who\naffirm the legal description and current market value of the home, and\ninspectors who go through the major equipment, wiring and plumbing, to assess\nthe condition of the home you want to buy. It also makes sense to have a tax\nexpert inform you what expenses are deductible. <\/p>\n\n\n\n

Can a Foreign Buyer Get a Mortgage?<\/h2>\n\n\n\n

Cash is simpler and faster. It can avert mortgage\napplication and loan origination fees, appraisal costs, and title insurance\npolicies that cover lenders \u2014 but which homebuyers have to purchase. On the\nother side of the coin, financing has tax benefits. <\/p>\n\n\n\n

In the United States, the first step to a mortgage is\nthe prequalification phase, which will indicate how much money the buyer can\nborrow, and at what interest rate.  Although\nthe mortgage specialist can use an international credit report when determining\neligibility for a certain loan amount, it\u2019s typical for a buyer to develop a\nU.S. credit history by opening U.S. credit card and bank accounts. <\/p>\n\n\n\n

Expect higher interest rates<\/a> than U.S. residents can obtain. Be ready with a down payment in the 35% range, and a 10% deposit. Interest, including prepaid interest (\u201cpoints\u201d) can be tax-deductible<\/a> home mortgage interest.<\/p>\n\n\n\n