Five Things to Remember When Seeking a Mortgage Solution as a Non-U.S. Citizen
By Milo • 12/14/2021
For the majority of home buyers, financing is a crucial step to ownership. The process from pre-approval to closing can take a bit of time. It is important to remember that mortgage lenders and banks are looking for a steady borrower, so streamlining your finances and keeping things as “normal” as possible is key. As a consumer, several purchases and financial decisions need to remain top-of-mind as you continue through the home loan process.
Unfortunately, many lenders consider loans for foreign nationals to be high risk. Non-U.S. citizens, regardless of their income, financial stability, or visa status, are viewed by banks as out-of-the-box borrowers that do not fit the streamlined mold used in their standardized operations. As a consumer, several purchases and financial decisions need to remain top-of-mind as you continue through the home loan process.
At Milo, we believe that international borrowers should be viewed as an asset, not a liability, in the American market. New numbers show that 107,000 foreign buyers made home purchases last year (from April 2020 to March 2021). Milo is the only lender nationally that exclusively writes mortgages for non-U.S. citizens. Our team is an expert resource that believes strongly in helping foreign borrowers obtain homeownership in the U.S.
Streamline the Process
A mortgage is a look into your finances, and for a large majority, it is one of the largest purchases made throughout a lifetime. Any sudden changes in your financial situation, whether it’s money coming in or going out, can cause a problem with your financing. Banks and traditional lenders are much more likely to scrutinize mortgage loans for international clients, so these pitfalls may have an even greater impact.
Find an Expert
When you work with a specialist like Milo, however, loans for non-U.S. citizens are an easy process, with low interest rates and quick closings. This provides power to you as a buyer and gives you the upper hand in negotiations.
Milo is a direct lender offering world class customer service in a digital setting. You can easily schedule a remote closing to free up your schedule and save on travel expenses, and you won’t have to stumble through a mountain of paperwork. The only documentation we require is your passport with a visa, proof of income, and a current appraisal on the property for purchase. In fact, this is not a shortcut, it’s the result of incredible technology and a team focused solely on mortgage solutions for non-U.S. citizens.
Keep Your Finances Stable
A new home purchase is exciting, and it is understandable to want to dive straight into making a new appliance purchase, updating your living room furniture or adding a screened-in patio over your sparkling new pool. However, be cautious of financing anything that could change your debt-to-income ratio while in the process of closing your loan. Other lending inquiries, like a car loan for example, requests your credit history and could possibly throw up some red flags during the loan process.
Additionally, stay with your current bank and keep your deposits and purchases in line with your regular spending. This includes your bank accounts and credit card transactions. All of your finances are being watched until closing.
Not being honest on a mortgage application doesn’t make sense. Even private loans from a personal source should be noted on your application, and it is very easy to see when someone has padded their income with a quick look at verification documents. When you work with a good mortgage team, you will be walked through what you can afford and how to leverage different aspects of your financial assets and liabilities to achieve your goals.
Build Credit if You Can
Before you begin your journey, start building credit in the United States, if you are able. This can be achieved through small secured credit cards. Of course, saving for your down payment and working with the right team to help you secure your loan will allow you to start off on the right foot. Remember that all mortgage rate offers are different, so it is imperative that you look at all of the options and guidelines before you make a decision as terms, rates, and requirements often vary significantly.
Buying a home in the United States as a non-U.S. citizen can be difficult without the right lending partner. The vast majority of home purchases made by international buyers, up to 72 percent, are paid with cash. This is because the process can be so difficult with a traditional lender or bank. Milo is happy to be a solid mortgage solution with generous lending terms and a fintech solution that makes an American home purchase attainable.
Milo is not a hard money lender. With rates as low as four percent, our team can provide the interest rates of a bank with the flexibility of a private money lender. This means quicker closings and a high level of support throughout the process. Milo offers new purchase, investment, refinance, and cash-out loans with a transparent process from beginning to end.