Save for a Down Payment
Then, consider saving up for a down payment for your potential home. Mortgage loan lenders and other financiers usually require some security before lending you money. Furthermore, most real estate agents require 20% down payment for your new home. Banks on the other hand need to assess your Front-End Ratio which requires that your monthly expenses should not exceed 30% of your gross income before you qualify for a loan. Moreover, most lenders prefer to give loans to people who have a Back-End Ratio or Debt-to-Income Ratio (DTI) below 36% of your gross income for you to be able to pay off your debts. Your credit rating is also important since it determines the risk of lending you money. Most fresh immigrants have low credit scores and therefore rarely qualify for a mortgage. It is advisable to start building your credit as soon as you arrive in the United States. The amount you save will definitely determine the amount of mortgage you qualify for and thereby the kind of home you will buy.
All factors above considered, it is advisable to save long-term before settling to buy a home. It should be part of your long-term planning and devise it as an investment that will bear fruits if carefully planned and divested to the future. Weave your saving plan for buying a home in your career path and if you have a family, talk to your spouse and family members in order to pool resources together and set a goal for your home ownership savings plan. In essence, planning and saving is a crucial ingredient in buying your house in the United States.
Explore Financing Options
After you have attained your saving goal, you may still need more money to buy your dream house. The government and specialized financial institutions can help immigrants buy a house. There are several organizations in the United States that can aid you in securing low cost loans to buy a house. The Federal Housing Administration (FHA) offers 3.5% down payment mortgages to participating lenders. On the other hand, if you choose to live in a rural or suburban town, the United States Department of Agriculture (USDA) offers low financing rates and 100% financing for home loans. Fixed mortgage rates are usually 15-39 years long and interest does not change despite market rate changes. Mortgage providers will usually ask for your bank statements for all your asset accounts, W-2 forms for the last two years and your last two years, tax returns. Pay stubs for employees, profit and loss accounts for employers, driving license and a copy of your social security number will also come in handy before you get approved for financing.
Shop for Your Ideal Home
After securing financing, shop for a piece of property in the area you like depending on your initial assessment of your ideal home. Sites like Zillow.com offer numerous listings of homes for sale all over America to choose from. After finding your potential home, make an offer and negotiate the listed price of the home with the seller and agree on a price you can afford. Thereafter, get a home inspection to evaluate whether the house has any issues. Next, it is time to find homeowners insurance to secure your new home in case something unexpected like fire or burglary happens to your home. Insurance pays for damages to your home in case of calamities and it is a good way to secure your hard earned investment. Finally, close the deal and sign the required papers.
In conclusion, it is worth noting that African immigrants need to carefully plan your finances, career, savings, and devise a long-term strategy in order to finally own a home in the United States. Improve your credit score and keep good financial records to qualify for financing and then shop for a suitable house in an ideal location. Every step of the way, do not be afraid to answer questions and always have a trusted advisor to assist you along the way. You can meet Veteran African immigrants on the Afrikagora platform, a resource that can aid you attain your dream of owning a house in America. Be sure to sign up for Afrikagora magazine, events, forums and newsletter to gain tips and tricks that will help you settle in the United States as an African expatriate with ease.
Dickson Soire
Afrikagora Magazine
