How do I qualify for a mortgage/financing as a foreigner?
January 23, 2013 in mortgage by jedwan
I know in my country (South Africa) the banks do credit checks and calculate a max loan amount based on income. How is Texas different? Will the do credit check in country of origin? How does mortgage influence your tax payment to government. We do not get tax cuts for bonds.
The bank is mainly interested in whether you have the ability and intention to repay the loan. They make whatever background checks they want, to assure themselves you are credit worthy.
To qualify for a loan, you must show ability to repay. Usually this means you have income from employment. It helps if you have been at the same job for a longer period of time. It also helps if you can provide collateral.
I think if you need a loan, then go to your local bank, preferably the branch where you deposit your pay cheques. Ask to apply for a loan, and the bank will ask what they want to know. If you feel the amount of the loan is not enough, or the interest rate is too high, then you don’t have to borrow.
There is no point asking on yahoo. You need to ask the bank.
The same applies in the US as far as credit checks and income. If you do not have an established US credit history, the bank may require an International Credit Report which can be costly.
Mortgage interest is a tax deductible item on income taxes.
If you are not a US Citizen, you can still purchase property in this country but you will be subject to some different guidelines. This is mostly due to the fact that since you are not a citizen it is a possibility that you will leave the country and not return to pay your obligation. Ask the mortgage specialist at your bank as suggested but many Mortgage Brokers can be of service too. Just make sure they are an established and reputable Broker. In addition, Texas has some very specific lending guidelines that are unique to that state. Being a border state, they might have tougher restrictions on lending to foreigners.