Every year, thousands of Britons decide to relocate to other countries for a variety of reasons – from schooling to employment.
Whilst many choose to rent property temporarily during their stays – regardless of length of stay – there are many more that choose to buy a house or apartment across the pond.
With the credit crunch in full swing, the price of mortgages in the United States has been somewhat unpredictable as of late. Indeed, the numbers of repossessions has been increasing as lenders attempt to recover costs as a result of market complications.
For those looking to purchase properties in the United States, it’s important to note that the American mortgage market is different from what you’d be used to back home. It’s also worth remembering that the rules for purchasing may be different from state-to-state, and it’s worth looking into your destination’s law before considering a purchase.
Research is crucial when it comes to finding mortgages in other countries. If you’re looking to relocate it can be worth taking some time to shop around for the best deal, for some lenders may only offer certain deals on loans and mortgages to residents only.
Pre-approved mortgages can be utilised in order to save time and money. Some lenders may require you to have six months’ worth of mortgage payments in a US bank account before the sale can be approved – as well as some extra in order to cover utilities and local taxes.
Pre-approval allows the lender time to research yourself as a buyer – from your employment to your current savings - and can be useful in allowing you a bit more time to get a bit of extra money together to fund the purchase.
These checks also help put the mind of the lender at ease by providing proof of funds in preparation for the sale. It’s best to ensure that you have the funds in place, as well as secure employment before committing to a sale.
For those looking to purchase property in the United States, hiring a lawyer can be useful for the application process. Ensure that you research different options in this sense; there are a number of lawyers that specialise in both UK and US property law.
Exchange rates
are another important part of the decision to purchase property abroad. With many countries allowing the chance to secure debt against the property itself, many are often tempted by the first mortgage deal they come across – however it’s worth researching thoroughly in order to avoid any horror stories.
