If you are planning on buying a new home in the United States, then understand that the U.S. real estate market is rather complicated. And, if you are a foreign-born citizen, then the process for you will be slightly different. Therefore, doing your research and being aware of the details will significantly help you in making the whole process more efficient.
Following are some essential tips that will help you successfully buy your own home in America.
1. The Basic Requirements
You don’t have to be a citizen to buy a home in America. However, you are required to have an individual taxpayer identification number. This number is assigned by the Internal Revenue Service to foreign residents who file income tax returns. Additionally, you must hold a valid international passport along with current photo identification.
While property ownership is not associated with your visa or immigration status, there are rules with regards to how long you can stay in the country. So, before you think about buying a new home, look into the visa requirements.
2. It is Better to Get a Mortgage
Buying a property in the USA is an expensive affair, so if you are thinking of saving money and building equity, you might have to wait a while. However, if you have a regular flow of income, you can quickly get a mortgage on the house. Even if you have certain budget constraints, there are still many secure and affordable mortgage options that may fit within your perquisites. If you are planning to get a mortgage, make sure that you build a good credit score. The eligibility of your loan highly depends on the credit score you hold.
3. Paying for Property in All-Cash
If you do have enough money to buy a new home in all-cash, you certainly can do so. However, all cash transactions above USD 10,000 must be reported to the federal government. All the parties, including the purchaser, real estate agents, attorney, and title companies, will be involved while reporting the transaction. And the government may also ask you how you have earned the money to verify whether it was acquired legally.
4. Hire Certified Realtor
Ensure the realtor that you hire is certified international property specialist (CIPS). Hiring an experienced realtor will help you safeguard your interests. Moreover, request your agent to explain the home buying process in the USA thoroughly. Knowing how homes are bought and sold, and understanding the inspection and negotiation process will help you get good deals.
5. Plan Out Your Finances
Creating a financial plan beforehand can help you in the whole process. Consider all the expenses you will have to bear as a homeowner such as mortgage, insurance, property tax, maintenance costs, etc. By knowing all your costs associated with the house, you will be aware of how much money you have to set aside for such continuous expenses.
Buying a home in the USA is a bit complicated task. Therefore, it is essential to do your research and understand the process comprehensively to make a well-informed decision.
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