There are many people buying houses in the United States, so what is the policy of buying houses with loans in the United States? It must be a concern of people who go abroad. Come and learn about the interpretation of American loan purchase policy with visa column. Welcome to reading.
Interpretation of American loan purchase policy
Whether Americans can afford to buy a house depends largely on whether they can get loans from banks, and whether banks can lend depends on the income of borrowers. At the request of Dodd-Frank Act, the Consumer Financial Protection Bureau of the United States issued a new regulation on the American mortgage market, which came into effect on June+10/0, 5438. According to the regulations, the lender needs to prove that the borrower can really repay the mortgage. Therefore, the lending bank has to consider a series of factors, such as the borrower's income, existing liabilities, credit records and so on. To confirm the financial status of the borrower.
As early as last year, Bank of America began to update its technology, write new loan procedures and train its employees to adapt to the new regulatory requirements. Some insiders said that in the next few weeks, the borrower's application process may not be particularly smooth, including the need for longer processing time and strict review. Humphries, chief economist of Zillow, a real estate information website, said that in the first two months of this year, the mortgage application process may not be particularly smooth in the short term, because lenders need to move to the new system, but the new regulations should have little impact on the US real estate market.
According to the data released by the American Mortgage Banking Association, the number of mortgage applications in the United States has been declining recently, hitting a new low since nearly 13, which reflects the impact of higher mortgage interest rates in the United States. In addition, mortgage lenders such as Wells Fargo and JPMorgan Chase, which have benefited a lot from refinancing in a low interest rate environment, also warned their business prospects that the shrinking loan demand may be more serious than expected.
Mortgage interest rate rises
It has been seven years since the US real estate bubble burst, and the tortuous US housing prices are now gradually returning to the peak. According to the latest report released by data provider CoreLogic, in June last year, American house prices rose by 1 1.8% year-on-year, achieving the second consecutive year-on-year growth of1month. In addition, among the 50 largest metropolitan areas in the United States, the house price in 10 has returned to the highest level in history. However, while house prices are rising, the mortgage interest rate in the United States is also rising. According to Fannie Mae's data, since the Federal Reserve first released the signal of withdrawing from quantitative easing (QE) in May 20 13, the interest rate of 30-year mortgage in the United States has risen by more than 1 percentage point, reaching about 4.5%.
It is reported that it takes about two months for overseas buyers to apply for loans to buy a house in the United States. At the same time, the interest rate of mortgage is also rising rapidly, which has a great impact on the transaction volume. Some analysts said that the US property market now relies too much on buyers who pay the full amount at one time, but the rise in house prices must rely on traditional buyers who borrow money through mortgages. Therefore, the increase in lending standards and interest rates may hinder the recovery of the US housing market. According to the report of Goldman Sachs, before the financial crisis, the proportion of "one-time payment" housing transactions in the United States was only 20%, but now it has risen to nearly 60%. It is worth noting that the report released by the National Association of Realtors shows that American investors have become the second largest foreign buyers in the US real estate market. When many Americans are overwhelmed by heavy mortgages, 70% of American tenants buy houses in full.
Barron's Weekly believes that house prices in the United States will continue to rise in the next three years, but the rate of increase will be much slower, and there will be no double-digit growth like last year.
Generally speaking, the reform of mortgage market may affect the recovery of American real estate market.
Introduction to the advantages of American loan to buy a house
Many people will choose America, so what are the benefits of buying a house with a loan in America? This is a problem that many people care about. Let's take a look at the advantages of American loans to buy a house. Welcome to reading.
First, the main reason for choosing a loan
(1) The interest rate of American loans to buy a house is low, which can maximize the leverage effect.
Buyers in China can make use of their own capital advantages to keep the flexibility of personal capital operation, which will attract the attention of many domestic buyers.
(2) China's foreign exchange exit policy has tightened, making it difficult for funds to leave the country.
In the United States, housing loans can be repaid with rent (paying mortgage with rent), which reduces the pressure of capital expenditure and is conducive to the formation of positive cash flow. At the same time, the pressure of difficult exit will force some China buyers to take the form of repayment.
2. What's the difference between choosing a loan and paying in cash?
The two payment methods for house purchase have their own advantages and disadvantages, but in a nutshell:
(1) Full cash payment
Advantages: fast transaction speed, low transaction price and faster transfer procedures.
Disadvantages: unable to enjoy interest tax exemption, unable to effectively use capital leverage, and great financial pressure.
Suitable for the crowd: buyers with sufficient purchase budget who need to buy a house in the short term.
(2) Loan payment
Advantages: reduce the financial pressure, use the leverage of mortgage funds and enjoy tax reduction and exemption.
Disadvantages: the examination and approval procedures are cumbersome and time-consuming, and high-leverage investment is risky, which is not conducive to obtaining more favorable housing prices.
Applicable people: property buyers with insufficient purchase budget or weak investment awareness.
Five main points of American loan to buy a house
In the United States, it is difficult for most people to buy a house in full, and most people have to choose a loan to buy a house. I'm here to introduce you to five main points of American loan to buy a house. Overseas investors should come and have a look. Welcome to reading.
Introduction of five main points of American loan to buy a house;
1. Don't let the mortgage agency know the details of the house purchase.
The house sales contract is an important basis for determining the timing of several American house purchase transactions, such as mortgage application and completion period. Generally speaking, the intermediary will help deal with these things, but the homeowner must ensure that the communication between the lending institution and the intermediary is correct.
If the important date marked in the contract is missed, the homeowner may face the risk that the down payment will be ruined. The prerequisite for avoiding this situation is that the information obtained by the lending institution from the intermediary is correct and truly registered.
2. Failure to grasp the loan interest rate
When the house sales contract is formally established, the buyer can lock in the mortgage interest rate.
Because the interest rate of housing loans may change every day or even every minute, if the interest rate is not locked, the real interest rate may be different when the procedures for housing loans are completed and the documents are signed in the United States in the future.
If you don't want to run into this risk, you must lock in the interest rate. Now most lending institutions are willing to provide 30-day interest rate locking for free.
In addition, it is also necessary to require lending institutions to quote according to the scheduled completion schedule of the transaction, and consider the possibility of interest rate rise to ensure that even if the interest rate rises, the loan procedures will not be affected.
3. Not all documents should be provided.
Next, American housing loan institutions will require homeowners to submit complete and detailed written documents.
These documents include: payslips in the last 30 days, tax return records in the last two years, all financial statements so far (for the person in charge of the company), all asset accounts in the last two months, records and descriptions of withdrawals of more than 65,438+0,000 yuan, quotations from home insurance, and relevant documents of the remaining houses and their own enterprises.
Everyone must make up all the lost documents. If the income comes from commission or the source is not fixed, the applicant must authorize the lending institution to inquire with the current and former employers.
Mortgage institutions will also investigate credit records, and the information that may be leaked includes information such as employer, address and debts over the years. If any new information is found, the owner is obliged to explain it in detail.
4. Omit important financial information
A good American housing loan institution will start with reviewing basic information such as personal data, contact information, work experience, residence history and financial income. Although seemingly simple, whether in writing or in person, the homeowner can provide correct information and answer every question, thus successfully taking the first step of mortgage application.
5. Can't tell the difference between mortgage approval and pre-approval.
Many homeowners can't tell the difference between mortgage approval and pre-approval American buyers need to pay special attention to the fact that they must obtain the prior approval of the "mortgage appraiser" before bidding on the house they intend to buy or sell.