Mortgages in the U.S. are very different from loans you may know from banks in your home country. U.S. banks are structured differently and are subject to different laws and regulations. If you would like to obtain financing in the U.S. with a U.S. bank, you should know these differences and the various options available to you.
The Process for foreign Nationals
1. Our financing partner, a mortgage broker, can help you through the entire process.
2. To get started with the free of charge consultation, you will need to complete an inquiry form.
3. Based on your personal scenario and financing plans you will receive a “Pre-Approval”. This is a document showing that you are pre-qualified for a specific purchase price and a corresponding loan amount.
4. Financing offers will be presented to you which are estimates of all costs connected to the financing, but also general costs related to the property purchase. The offers will show you the estimated amount of the expected capital acquisition costs (“Closing Costs”), the amount you must have ready for the closing as well as the amount of your future monthly charges.
5. Once you sign the sales contract for your dream house a loan application has to be made. Financing in the U.S. is object-based which is why you need to have a purchase contract first before you can sign a loan application. We will make sure that a financing clause (“Finance Contingency”) is included in the purchase contract.
This states that you can withdraw from the contract and get your deposit back in case financing should not occur.
6. Make the loan application. The application includes information regarding the real estate, as well as regarding your residence, your income and your assets.
7. Along with the application you will get a customized list of the necessary documents. In addition you will receive the corresponding sample letters for the banks, credit card companies, employers, tax consultants, etc.
8. As soon as your documents are completed and available, the mortgage broker will submit your file to the U.S. bank. The bank will review everything closely (“Underwriting”) and will then issue a Conditional Loan Approval.
9. For a loan, the U.S. bank will require an appraisal. The appraisal is ordered directly from the bank through a 3rd party company. The appraisal is a comparison of the subject property with three to six properties similar in location and design. The lower amount of the purchase price or the appraisal will be used to estimate the actual loan amount with the U.S. bank.
10. If all conditions are cleared, the so-called “Commitment” will be written up. This is the final loan approval. When this is presented the mortgage broker will order the remaining services.
11. Once all these steps are completed, the bank will transfer the documents to the title company. During the loan processing the title company will check if there are other potential third-party claims against the property existing in written form (reinsured), so that the property can be handed over unencumbered and without further claims resulting in having a clear title.
12. Should you be in the U.S. during the time of the closing, you will sign the loan documents at the Title Company office on the agreed date (Closing date) and produce your passport.
13. Should you not be in the U.S. during this time, the mortgage broker will send the closing documents to you via email. You will sign these documents in front of a notary or at the U.S. consulate, and have them notarized at the same time. Then you have to send them back to the title company via courier.
14. At the time of the closing, your equity will have to be transferred to the title company’s escrow account. If you transfer funds from the outside of the US, you will have to initiate the wire in advance.
15. On the day of the closing the title company will pay the purchase price to the seller and will record you as the new owner in the public records.
16. You will receive the key to your dream house on the day of the closing. Should you not be present during the closing, we or your property management company can take the keys and immediately apply for services like electricity, water, internet etc.
About our Mortgage broker
Paul International Consultants
Their specialty is the unique personal and comprehensive consultation assisting clients through the entire process of purchasing a property in the United States.
They started in 1994 as financing agents for German-speaking customers in Florida and now advise buyers from around the world on all matters related to purchasing and financing in the United States.
Beyond their extensive knowledge, individual consulting, as well as comprehensive services, their portfolio includes a large number of banks specializing in foreign buyers.
They take the time for you and your personal requirements, advise you in your own language no matter the time zone you are in.
Furthermore, they set a high value on providing an independent consulting service. All this has led to an average loan volume of $200 million per year.
Why should you use them?
1. One-on-one personal consulting DIRECTLY with the client in several different languages
2. Preparation of sample calculations based on various financing scenarios (over 100 different options available)
3. Assisting the client so that they may select the best program available
4. Issuance of pre-approvals based on the client‘s financial overview
5. Assistance in completing the client‘s loan application to the lender
6. Providing a list of lender-required documentation accompanied by sample templates available in several languages
7. Analysis of documents provided to help ensure acceptance by lender
8. Certified translations of all documentation
9. Assisting clients in completing and reviewing lender disclosures
10. Speaking to lenders daily (if applicable) with weekly updates
11. Reviewing all conditions and assisting clients in obtaining any necessary requirements
12. Recommendations for homeowner’s and flood insurance
13. Coordinating execution of closing with the clients, lender, and title company or attorney
About the owner, Kirsten Paul
Kirsten Paul is a certified banker with a German banking degree and a licensed Florida mortgage professional for almost 30 years, bringing industry experience from both Europe and the United States.
Kirsten is the founder of Paul Finance, LLC and Paul International Consultants, a unique consulting firm with offices in Germany and the USA specializing in assisting and consulting foreign nationals through all aspects of financing real estate in the United States. Customers come mainly from Europe, South America and Asia. Kirsten built the company from the ground up.
Her specialist team speaks eight languages and works in several time zones for advice throughout the transaction. They use their extensive network of lawyers, title companies, tax consultants, insurance agencies, and many other service providers in the US and outside the country. Since 1994 Paul International Consultants has been among the market leaders in the international US real estate financing business.
Kirsten also launched GLORIUS – The Global Mortgage Marketplace. GLORIUS pairs private and institutional borrowers and lenders from all over the world for financing and investing in Florida real estate. GLORIUS is fully automated and works one-on-one. With this fully automated, digitalized platform, Kirsten offers fast and easy financing for borrowers and an attractive combination of higher yields and lower risks for lenders.
Prior to founding GLORIUS and Paul International Consultants, Kirsten worked at First National Bank of Southwest Florida. She was responsible for the European division, building up and expanding the bank’s international mortgage sector. Prior to joining First National Bank of Southwest Florida, Kirsten worked for Commerzbank AG in Frankfurt, Germany, one of the largest banks in Europe.
For more information please visit their website.