Dreams of own housing – this is what unites people all over the world.
Mortgage lending is common in the US. Of course, someone prefers to rent an apartment all his life. However, this option seems not so attractive after the usual calculations, indicating that the cost of renting an apartment on average is equal to the monthly payment on the loan. The only difference is that the real estate granted to the mortgage will sooner or later become yours, but the rented dwelling will remain with the owners, who at any moment can ask you to move out for a number of reasons independent of you.
Conditions for obtaining a mortgage loan
The mortgage conditions of the US are profitable. The average for the country with a mortgage term of 30 years, they start at 4.8% per annum.
Mortgage lending in the United States is of two kinds. The first one – with fixed rates, is the choice of people who do not like to take risks. The second – with floating interest rate and depending on a number of factors. It is worth considering that the average amount of a mortgage is about $ 100,000. For this price you can even buy a house with a landscaped area.
What is necessary to obtain a mortgage?
In order for the bank to approve your candidacy for a loan, you must provide the following list of documents:
- The document proving the identity;
- A certificate of income for the last few months, which you are required to provide on demand in the accounting office of the official place of work.
- Printing out a credit history. This document is needed only for those who have already made any purchases on credit;
- Recommendations of other banks and other financial institutions, including individuals who lend money;
- A document that talks about the current status of your personal account;
- Contract of sale of real estate (in this case, its copy is necessary).
You need to check your credit score before you start applying.
In addition, to obtain a mortgage, you must make a down payment, which is usually 20 to 50% of the total value of the property (money must be on the buyer’s personal account in one of the banks). Some banks offer a mortgage without a down payment, but its terms are usually not very profitable for the client. Thus, on favorable terms, you can take into the mortgage apartment on the ocean coast in Florida.
If your dream is to buy a property in Florida, then know that it is quite possible to realize it.
Picture Credit: nattanan23