Foreign investors see the US real estate landscape as full of investment opportunities, and two factors have given this sector its indomitable strength. The first of these factors is that the US housing market is recovering strongly, while the second is related to global market volatility, including the effects of the Greek debt crisis and the unpredictable stock market. from China.
These factors have led different investors to take stock of the US real estate market even with seemingly modest returns. This influx of foreign investors has accumulated in recent years and represents significant percentages of commercial transactions carried out in different national metropolitan markets. Now, this is how you, the foreign investor, will prepare to obtain foreign domestic mortgages.
Preparation
- Borrowers will present the full loan structure at first; This structure will inform the lender of the parities involved in the transaction.
- For specific tax purposes, lenders will allow only foreign buyers to own the real estate.
- Borrowers will make sure that the lender knows who all the borrowing entities are; details must be clear.
- Lenders will need a brief description or resume of each foreign national inclined to be a borrower. Lenders are always interested in learning about the borrowers’ occupation, background, and experience in the domestic and international commercial real estate sectors. If international assets are pledged, lenders will even require a statement of net worth from borrowers.
- Mortgage lenders require a source of financing – its origin and existing flow – from borrowers. Remember that lenders are always sensitive to any illegal activity, such as money laundering, related to the borrower’s funding source. Because of this, some lenders may even require credit checks and background reports on a borrower.
- Ultimately, borrowers will find a foreign mortgage lender that has experience closing these types of transactions quickly and easily.
These steps come in the preparation phase; follow each step of this phase correctly to secure a foreign national loan at the best rates. All leading lenders will always focus on closing the process of obtaining a foreign national mortgage in the shortest possible time. Before choosing a loan institute, it is advisable to have a few rounds of meetings with the team.
Once the borrowers are satisfied with the terms and conditions set by the lender and vice versa, the deal is closed. As a borrower, it is your right and responsibility to never ignore the fine print in the contract.