To buy a house in the United States, you first need to prepare funds and a passport. If you are buying for the first time, it is recommended to choose a professional agent for help. After selecting a house, you can submit an offer letter to the seller. If you want to purchase a house with a loan, you need to prepare a bank pre-approval letter at the same time. After the buyer and seller reach an agreement, they can sign a purchase contract, and the buyer pays a small portion of the house price as a deposit. After the contract is signed, the buyer needs to hire a home inspector to inspect the house. If any problems are found, he or she must communicate with the seller in a timely manner. If there are no problems, the buyer must pay for the house and complete the property delivery.
1. What is the process of buying a house with full payment in the United States?
Purchasing a house with full payment is roughly divided into five steps: preparing to buy a house, making an offer, signing a contract, house inspection and property settlement. 1. Prepare to buy a house
Before buying a house, you must make preparations in three aspects: first, funds and passport, which are the prerequisites for buying a house in the United States; second, choosing a real estate agency or broker; third, understanding the appropriate Purchase area and property type, and initially determine the housing stock.
It is not necessary to find a broker when buying a house abroad, but the broker has more information about the real estate and has a clearer understanding of the local real estate market dynamics and transaction processes, which is very useful for buyers with little overseas real estate experience. necessary. And in the United States, the broker’s commission is paid by the seller.
2. See the house and make bids
After selecting the house, you can go abroad to see the house in person, or you can entrust an agent or others to look at the house on your behalf. In addition to looking at the internal facilities of the house, you should also observe the surrounding traffic conditions and even the conditions of the neighbors. Agents will also look up home information, including listing history, market statistics, government tax assessments, etc.
After the property is confirmed, the agent submits a bid letter (offer) to the seller on behalf of the buyer. Usually the price presented in the bid letter is lower than the price listed by the seller, and the buyer and seller will negotiate several times. Determine the transaction price.
Image of the bid letter for real estate transactions in the United States
The picture shows a blank bid letter. The buyer needs to fill in the property information, offered price, proposed transaction date and other information
3. Sign a contract and book a house
The agent or lawyer will arrange a formal signing time. Before signing the contract, the agent or lawyer will explain the contract terms in detail to the buyer. Things to note when signing a contract: Since buying a house in the United States involves a home inspection, the possible risks in this link can be written into the additional clauses of the contract in the contract. For example, if there are major hardware problems, the buyer has the right to terminate the contract. General questions Can the seller be asked to pay for repair costs? etc. After the buyer and seller confirm the contents of the contract, they can sign it. At the same time, the buyer needs to pay 10% of the house price as a deposit. Legal terms that you need to pay attention to when signing a house purchase contract 4. House inspection
In areas such as New York and Long Island in the United States, a house inspection is required before signing a house purchase contract. In other areas, it is required after signing the contract. The buyer needs to have a licensed home inspector inspect the house, and the inspection fee is paid by the buyer. The inspection includes the basic structure of the house, power supply system, heating and cooling equipment, etc. The home inspector will provide a detailed inspection report and list the areas that need repair and give it to the buyer. The broker will communicate with the seller on behalf of the buyer to make repairs or pay for the repairs. If the problem is serious, the buyer has the right to terminate the contract.
Image of the U.S. home inspection report
The picture shows the home page of the home inspection report for a one- and two-story villa in Las Vegas, U.S.A., with information about the client and the property
< p>If you buy a new house, the builder will provide a one-year warranty, so you don’t need to do a house inspection before transferring the property. However, it is recommended to do an inspection every ten months. If there is any problem, you can contact the warranty company for repair.5. Real estate delivery
The buyer can then pay for the house. When buying a house in the United States, the funds are paid to a third-party custodial account and will not be paid directly to the seller. This fully guarantees the safety of transaction funds. When transferring, the buyer can ask a transfer lawyer to assist if necessary. The lawyer will verify the property rights of the house, including whether there are any remaining debts on the house. If there are no problems, the transfer lawyer will assist the buyer to sign the transfer documents. At this time, the buyer needs to pay the corresponding transfer fee. After the documents are signed, the transfer procedures are completed and the buyer can get the keys. The transfer lawyer will go to the local land bureau to register the property deed for the buyer.
2. What is the difference between buying a house with a loan and buying a house with full payment?
To buy a house with a loan in the United States, you need to obtain a pre-approval letter from the bank before choosing a house. After the house purchase contract is signed, formally apply for a loan from the bank. The bank's valuation of the property may be lower than the actual sale price. To reduce the risk, a protective clause can be attached to the offer letter. U.S. loan house purchase process
1. Loan time
(1) Pre-approval
If you choose a loan to buy a house, you need to provide proof of income and bank before choosing a house. The three types of materials, including flow statements and asset certificates, must be pre-approved by the bank. After approval, the buyer will receive a pre-approval letter, which is valid for 30 to 60 days. The pre-approval letter needs to be provided to the seller together with the offer letter for reference in the future, because the pre-approval letter proves that the bank has verified that the buyer's credit status meets the requirements, and the seller can also see the loan limit.
Image of a mortgage loan pre-approval letter from a bank in the United States
The pre-approval letter contains the upper limit of the bank’s pre-approved loan amount for the loan applicant, as well as the temporarily locked interest rate standard?
(2) Formal loan
After signing the house purchase contract, the buyer needs to submit the contract and the materials required by the bank to the bank to formally apply for a loan. The bank approval time is usually 45 to 60 days. If approved, the bank will pay the house directly and the buyer and seller will complete the transfer process. If the bank refuses the loan, the buyer will need cash to complete the transaction or handle it according to the contract.
A loan application from a U.S. lending institution indicates intent
The loan application form needs to indicate the lender’s own situation, purpose of the loan and other information
2. Bank valuation< /p>
After the buyer submits a loan application, the bank will ask an appraiser to appraise the house. Therefore, in the offer letter, you can attach two additional terms: house valuation and loan approval. The terms are generally valid for 15 days. If the house valuation is lower than the contract price in the future, the buyer can submit a house valuation notice to the seller within the validity period, and attach a house valuation report, requesting the seller to reduce the contract price to the house valuation. If the buyer receives written notice of rejection of the loan application within the validity period, the contract can be canceled as long as the notice is sent to the seller.
3. What should you pay attention to when buying a house in the United States?
When making a budget for buying a house, in addition to the expenses of the house itself and the commissions of brokers, lawyers and other related personnel, there are two expenses to consider: one is the transfer fee, and the other is the insurance premium. Things to note when looking at houses in the United States 1. Transfer fees
The day before the transfer, the transfer company will provide an accurate list of transfer fees. The buyer can go to the bank to write a cash check based on the transfer fees on the list. The transfer fee includes property rights-related fees, transfer tax and property registration tax. If you buy a house with a loan, it also includes loan-related fees, loan bank advances and intermediary account withholdings. If it is an all-cash purchase, the total of various fees is 1% to 1.5% of the house price; if it is a loan purchase, the total transaction fee is about 2% to 4% of the house price, whichever is the actual transaction. 2. Insurance premiums
Buying a house in the United States may involve homeowners insurance, which mainly covers damage to the house caused by fire, as well as damage to the house or personal property caused by many other reasons. The insurance premium is US$600 to US$1,000 per year. If you are buying a house in California, California law stipulates that you must purchase homeowners insurance when buying a house; if you are buying a house with a loan, the bank also stipulates that the buyer must purchase homeowners insurance.
There is also a landlord fire insurance in the United States, which is applicable to buyers of non-commercial properties. In addition to fire, it also covers damage caused by ice, snow, storms and mold. Buyers can consider at their own discretion.
The U.S. home purchase system is perfect, and relevant professionals can be hired to assist in every aspect to reduce or even avoid risks. In addition, the third-party fund supervision system in the United States is also very mature, so there is no need to worry about the safety of transaction funds.