Minimal limitations exist for foreign buyers who want to purchase United States property. While this is a long, complex process, the American Dream means endless opportunity, which is worth the wait and effort. Fortunately, partnering with mbanc Worldwide is partnering with a premier Foreign National Mortgage Lender and an unparalleled network of professionals who will ensure a seamless mortgage experience.
Preparation is key to streamlining this process. To ensure you are prepared, explore our step-by-step guide for international buyers who want to purchase U.S. real estate:
Step-By-Step: How Foreign Buyers Can Purchase U.S. Real Estate
Choose A Location
No restrictions exist on where foreign buyers can purchase property in the U.S. Still, endless opportunities can be overwhelming. Consider several factors, like the:
- Property’s purpose
- Real estate market
- Nearby amenities
The U.S. is massive, so research is essential. For foreign investors, emphasize ROI. Each neighborhood yields unique market conditions. Evaluating these conditions requires extensive expertise, and it is time and labor-intensive.
One of the first rules for foreigners buying property in the USA should always be to hire professionals. As an international buyer, you need a liaison with specialized knowledge of this process. Ultimately, we advise assembling a team that includes:
- A buyer’s agent with a CIPS designation
- A real estate attorney (or broker, depending on the state)
- A premier lender that specializes in foreign national financing
- A U.S.-based financial advisor and accountant
- A tax advisor and attorney
Fortunately, when you partner with mbanc Worldwide, you receive exclusive access to our network of real estate professionals with unrivaled expertise in foreign national financing.
Get an Individual Taxpayer Identification Number (ITIN)
Next, obtain an Individual Tax Identification Number (ITIN). Foreign buyers cannot purchase real estate until the Internal Revenue Service (IRS) issues an ITIN.
The IRS assigns an ITIN to those ineligible for a Social Security Number, which includes many international buyers and investors. To acquire this number, contact a Certifying Acceptance Agent (CAA) to fill out Form W-7.
Gather Your Documents
Gather your documents in advance. For foreign buyers, applying for financing takes longer and requires considerable paperwork and documentation.
If you wait until applying for a loan to gather your documents, you may miss out on an opportunity. These documents include:
- A valid passport, visa, or U.S. driver’s license
- Bank statements
- A credit report from your home country
- Proof of reserves
- Proof of income
- A tax return
Choose A Property
Foreign buyers should then start looking at properties. Work with an agent to scout properties, and keep the purpose of the property in mind.
For example, foreign investors can choose to purchase property in their name or the name of their business entity, which ultimately has significant tax implications. Communicating all of these desires with your agent is imperative.
Do Your Due Diligence
One of the most important rules for foreigners buying property in the USA is to always do your due diligence.
For foreign buyers who can’t visit to inspect the property, we advise executing a “power of attorney” to act on your behalf. Your due diligence should also include researching and arranging for taxes, a home inspection, an appraisal, and more.
Pick a Lender
Finally, pick a lender. Shop around and budget for all associated costs. Most foreign buyers need a Foreign National Mortgage Loan, but financing depends on your circumstances.
For example, your residence status directly impacts the loans you qualify for and the required documentation. We advise working with a lender that specializes in financing foreign nationals. Now, you are ready to make an offer, negotiate a price, and close.
Pay all relevant fees and taxes on your down payment, and you will officially own your piece of the American Dream.
Learn How mbanc Worldwide Can Facilitate a Seamless Mortgage Process for Foreign Buyers
For foreign buyers, the US real estate market is theirs for the taking. However, navigating this process and acquiring financing is complicated. Without the specialized knowledge and experience of a Foreign National Mortgage Lender, like mbanc Worldwide, it can be overwhelming. Fortunately, our network of professionals and innovative mbanc Invest tool can streamline this process to make it a seamless mortgage experience.
We don’t just finance mortgages; we finance your American Dream. Talk to our team today, and we will make that dream a reality together. We can’t wait to work with you.