Getting a Mortgage in America
– The Facts
America has always been a popular destination for UK overseas property buyers. The similarity in culture, the consumer society and the wide variety of climate make it an easy choice for a holiday home. This guide will help you towards buying your piece of the American dream.
How much can I borrow?
The maximum amount you can borrow as an American mortgage is 75% of the value of the property (same of you are remortgaging). The minimum mortgage amount is $100,000
What are the Interest Rates?
The American mortgage maket work mainly on fixed rate deals. At the moment we have some very competitive 15 (from 2.875%) and 30 year (from 3.875%) fixed deals available to overseas applicants. See our blog post here for more information http://www.choice-loans.co.uk/blog/cheap-american-mortgages-for-uk-citizens-available/
What else do I need to know about American mortgages?
The maximum mortgage term available is 25 years and the maximum age for getting a mortgage in America is 75 years. Both repayment and Interest-only mortgages are available.
What is the Legal process like?
The exact terms vary from state to state so do get yourself and American Realtor (Estate Agent). We can assist you here. They will be particularly helpful with Residency and Visa requirements.
In the US, if you put an offer on a property, thus means you are accepting it in the condition seen and you cannot bring up any defects at a later date in an attempt to lower the price. It is therefore important that when you find a property you like you get a survey (“Inspection Report”) done.
Once the first contract is signed a completion date is set, usually about 30 days later, upon which date the purchase will be finalized
In the interim, it is recommended that you take some “Title insurance”. This protects you in case it is found out in this period that a third party, such as a mortgage lender, has an undisclosed title on the property that may prevent the sale (referred to as the title being “clouded”. This insurance covers any costs you may have incurred as a result of such “clouds”.
All going well, on completion day the entire funds for the property are transferred and the process is complete
As we have the same language and a similar culture to America, it is easy to be lulled into the sense that the process is easy – this is how mistakes get made! Good advice is essential in any overseas property purchase and we can make sure you are dealing with Experts. Fill in the contact form opposite and get in touch.
Lastly, for your foreign exchange requirements we recommend the guys at Sterling Exchange. Please call Daniel or Kyri on 020 7329 9977 and mention Choice Loans in order to avail of rates that will be far better than your bank will offer you.