Mortgage
in the USA.
For registration of a mortgage loan it is necessary to collect a large number of documents, and also to have money for an initial contribution. The American mortgage association (Mortgage Bankers Association) recommends to the potential borrower to collect the sum from 10 % to 25 % of cost of acquired real estate. Still it will need the passport with the open American visa to visit of the USA.
Into a base package of documents enter:
- one-two letters of recommendation from bank, foreign or American, confirming not less than two-year history of cooperation with the client;
- credit history from credit bureau — American or the accommodation countries;
- the document confirming existence of the necessary sum on the account to make transaction within 3 — 6 months from the moment of the conclusion of the contract;
- about a certain constant income or financial statements in case the borrower has a reference the business;
- documents necessary for conclusion of the transaction (contract, confirmation of transaction and пр).
Thus it is necessary to consider that banks approach to each potential client individually therefore the necessary package of documents to everyone should be formed depending on circumstances.
Repayment rates in the USA pay off on two main models — or it is the fixed rate, or floating. Maturity dates generally make from 15 to 30 years. A mortgage on an adjustable rate — practice widespread in the USA as it is favorable to banks. The credit organizations define and change the sizes of rates, adhering them to quotations of bonds of the Ministry of Finance of the USA, LIBOR rate and so forth. There is a lot of models of calculation of adjustable rates, but it is most widespread so-called hybrid when certain number of years (as a rule, from a year to 10 years) the borrower pays the minimum fixed rate, and then during the remained period of repayment (on the average from 15 to 30 years) the rate changes with a certain periodicity. So, for example, the formula 5/1 is deciphered as 5 years of payments on the fixed rate, and then it changes once a year.
The most expensive real estate in America — in the State of California. Among the most inexpensive in respect of real estate – Georgia, Arizona, Michigan, Ohio, Philadelphia, New York.