USA Mortgages
Where you buy your property will determine where you will seek your mortgage. Mortgage terms, interest rates, etc. vary slightly from state to state and you cannot obtain a mortgage in one state to buy a property in a different state.
If you are certain about the place you would like to buy, you can obtain a pre-approval from a bank in that state. If you have not decided on a particular state, it is better to wait until you find a property you want before approaching a bank.
All 52 of the American states base their mortgage lending on affordability. To gather this information, lenders look at income vs expenditure. The maximum loan available to borrowers is usually 80 per cent of either the purchase price or a property valuation, whichever figure is the lowest. Banks in the USA have a minimum lending figure of $50,000 and mortgage costs can be quite expensive. Depending on the state in which you are buying and the purchase price of the property, mortgage costs could range from $4,000 to over $12,000.
UK citizens buying into the USA property market also need to be aware that they need a USA Social Security Number, a Green Card, or a US Passport in order to borrow over 70 per cent loan to value. These documents show that the borrower is registered in the US . To borrow under 70 per cent loan to value, a UK passport will serve. Furthermore, to borrow over 70 per cent LTV, borrowers will need to prove their income. Loans under 70 per cent are typically self-certification.