Getting a mortgage?
Aug 5th 2004, 10:32 am
#1
Gravity Always Wins
Thread Starter
Joined: Jul 2004
Location: Scotland -> Delaware - >Scotland?
Posts: 47
Getting a mortgage?
Does anyone here have any experience to share re. getting a mortgage in the US?
Someone I know in my company relocated to the US fairly recently and says that he got a mortgage no problem, within about 1 month of arriving. And that was with no credit history.
Any thoughts?
Someone I know in my company relocated to the US fairly recently and says that he got a mortgage no problem, within about 1 month of arriving. And that was with no credit history.
Any thoughts?
Aug 5th 2004, 10:45 am
#2
Pagan Sex God
Joined: May 2002
Location: Living in Oblivion
Posts: 3,668
Re: Getting a mortgage?
Originally posted by a lad insane
Does anyone here have any experience to share re. getting a mortgage in the US?
Someone I know in my company relocated to the US fairly recently and says that he got a mortgage no problem, within about 1 month of arriving. And that was with no credit history.
Any thoughts?
Does anyone here have any experience to share re. getting a mortgage in the US?
Someone I know in my company relocated to the US fairly recently and says that he got a mortgage no problem, within about 1 month of arriving. And that was with no credit history.
Any thoughts?
So, to summarise, if your credit is good in the UK, you have 20% to put down and you have a promise of employment in writing you
can get a mortgage straight away.
Aug 5th 2004, 12:05 pm
#3
Arrogant ****
Joined: Jan 2004
Location: Plano, TX
Posts: 4,323
Our experience is slightly different from Patrick's.
We lived in apartments for the first 9 months that we were here. We had enough equity from our UK house to put down 10% on a home here, but not 20%. The only reason 20% is important is that you need a 20% deposit to avoid the rather expensive "mortgage indemnity insurance" which your mortgage company will charge for lesser deposits (but there's a standard way around that).
As with all things financial over here, my Credit Union was enormously more helpful than any bank would have been in the same situation. They found me a mortgage broker who had dealt with H1B visa holders like myself before, and I worked with him from there.
Normally I wouldn't recommend a mortage broker, who can add another level of fees to your mortgage application. However, our broker managed to get us the same mortgage rate as any USC with perfect credit would have been offered - where mortgage companies approached directly by me for a quote often quoted 2 or 3% above the "standard" rate.
What we needed was proof of my employment here, and of my salary and details of my bank account activity since we arrived in the US. Other than that, not much. No international credit check, even though our credit score was not particularly impressive after only 9 months. Again, the fact that all my banking had been through a Credit Union who knew me and my company helped a great deal.
Finally, to avoid the Mortgage Indemnity Insurance we took out an 80/10/10 loan. This is a principal loan for 80% of the value at a standard mortgage rate, a 10% second loan (from the same company!) at 1.5% above the mortgage rate, and a 10% cash deposit. That saved us a few thousand dollars, if I remember correctly, in insurance fees, even once the higher interest rate was factored in.
I hope this helps. I really can't over-state how useful we've found it to belong to a Credit Union where we are known by name and our situation is understood. It's allowed us to overcome credit history problems and all the other financial hassles without a hitch, and now we're finally in a home we love!
We lived in apartments for the first 9 months that we were here. We had enough equity from our UK house to put down 10% on a home here, but not 20%. The only reason 20% is important is that you need a 20% deposit to avoid the rather expensive "mortgage indemnity insurance" which your mortgage company will charge for lesser deposits (but there's a standard way around that).
As with all things financial over here, my Credit Union was enormously more helpful than any bank would have been in the same situation. They found me a mortgage broker who had dealt with H1B visa holders like myself before, and I worked with him from there.
Normally I wouldn't recommend a mortage broker, who can add another level of fees to your mortgage application. However, our broker managed to get us the same mortgage rate as any USC with perfect credit would have been offered - where mortgage companies approached directly by me for a quote often quoted 2 or 3% above the "standard" rate.
What we needed was proof of my employment here, and of my salary and details of my bank account activity since we arrived in the US. Other than that, not much. No international credit check, even though our credit score was not particularly impressive after only 9 months. Again, the fact that all my banking had been through a Credit Union who knew me and my company helped a great deal.
Finally, to avoid the Mortgage Indemnity Insurance we took out an 80/10/10 loan. This is a principal loan for 80% of the value at a standard mortgage rate, a 10% second loan (from the same company!) at 1.5% above the mortgage rate, and a 10% cash deposit. That saved us a few thousand dollars, if I remember correctly, in insurance fees, even once the higher interest rate was factored in.
I hope this helps. I really can't over-state how useful we've found it to belong to a Credit Union where we are known by name and our situation is understood. It's allowed us to overcome credit history problems and all the other financial hassles without a hitch, and now we're finally in a home we love!
Aug 5th 2004, 12:35 pm
#4
Forum Regular
Joined: Aug 2001
Location: Bletchley, UK
Posts: 216
Originally posted by dbj1000
Our experience is slightly different from Patrick's.
We lived in apartments for the first 9 months that we were here. We had enough equity from our UK house to put down 10% on a home here, but not 20%. The only reason 20% is important is that you need a 20% deposit to avoid the rather expensive "mortgage indemnity insurance" which your mortgage company will charge for lesser deposits (but there's a standard way around that).
As with all things financial over here, my Credit Union was enormously more helpful than any bank would have been in the same situation. They found me a mortgage broker who had dealt with H1B visa holders like myself before, and I worked with him from there.
Normally I wouldn't recommend a mortage broker, who can add another level of fees to your mortgage application. However, our broker managed to get us the same mortgage rate as any USC with perfect credit would have been offered - where mortgage companies approached directly by me for a quote often quoted 2 or 3% above the "standard" rate.
What we needed was proof of my employment here, and of my salary and details of my bank account activity since we arrived in the US. Other than that, not much. No international credit check, even though our credit score was not particularly impressive after only 9 months. Again, the fact that all my banking had been through a Credit Union who knew me and my company helped a great deal.
Finally, to avoid the Mortgage Indemnity Insurance we took out an 80/10/10 loan. This is a principal loan for 80% of the value at a standard mortgage rate, a 10% second loan (from the same company!) at 1.5% above the mortgage rate, and a 10% cash deposit. That saved us a few thousand dollars, if I remember correctly, in insurance fees, even once the higher interest rate was factored in.
I hope this helps. I really can't over-state how useful we've found it to belong to a Credit Union where we are known by name and our situation is understood. It's allowed us to overcome credit history problems and all the other financial hassles without a hitch, and now we're finally in a home we love!
Our experience is slightly different from Patrick's.
We lived in apartments for the first 9 months that we were here. We had enough equity from our UK house to put down 10% on a home here, but not 20%. The only reason 20% is important is that you need a 20% deposit to avoid the rather expensive "mortgage indemnity insurance" which your mortgage company will charge for lesser deposits (but there's a standard way around that).
As with all things financial over here, my Credit Union was enormously more helpful than any bank would have been in the same situation. They found me a mortgage broker who had dealt with H1B visa holders like myself before, and I worked with him from there.
Normally I wouldn't recommend a mortage broker, who can add another level of fees to your mortgage application. However, our broker managed to get us the same mortgage rate as any USC with perfect credit would have been offered - where mortgage companies approached directly by me for a quote often quoted 2 or 3% above the "standard" rate.
What we needed was proof of my employment here, and of my salary and details of my bank account activity since we arrived in the US. Other than that, not much. No international credit check, even though our credit score was not particularly impressive after only 9 months. Again, the fact that all my banking had been through a Credit Union who knew me and my company helped a great deal.
Finally, to avoid the Mortgage Indemnity Insurance we took out an 80/10/10 loan. This is a principal loan for 80% of the value at a standard mortgage rate, a 10% second loan (from the same company!) at 1.5% above the mortgage rate, and a 10% cash deposit. That saved us a few thousand dollars, if I remember correctly, in insurance fees, even once the higher interest rate was factored in.
I hope this helps. I really can't over-state how useful we've found it to belong to a Credit Union where we are known by name and our situation is understood. It's allowed us to overcome credit history problems and all the other financial hassles without a hitch, and now we're finally in a home we love!
Aug 5th 2004, 12:58 pm
#5
BE Enthusiast
Joined: Jun 2004
Location: New York
Posts: 475
Run a credit check and see what you score is. I was very surprised how high was. I got a mortgage with my hubby no probs.
Aug 5th 2004, 1:02 pm
#6
Not living a 9 to 5 life
Joined: Jun 2002
Location: North Carolina
Posts: 11,061
Re: Getting a mortgage?
Originally posted by a lad insane
Does anyone here have any experience to share re. getting a mortgage in the US?
Someone I know in my company relocated to the US fairly recently and says that he got a mortgage no problem, within about 1 month of arriving. And that was with no credit history.
Any thoughts?
Does anyone here have any experience to share re. getting a mortgage in the US?
Someone I know in my company relocated to the US fairly recently and says that he got a mortgage no problem, within about 1 month of arriving. And that was with no credit history.
Any thoughts?
Ask that person in your company who got the mortgage for more information?
Aug 5th 2004, 1:34 pm
#7
Account Closed
Joined: Mar 2004
Posts: 2
Re: Getting a mortgage?
We used a Mortgage Broker, mainly because it was somebody my Wife had used before and to be fair she did a really good job.
I am sure it varies State by State as so many things do here, but just for guidance on CO:
Most people do use a Mortgage Broker.
For reasons I can not understand 30 year fixed is still the most popular, even when you know you will not be keeping the Mortgage anything like that time.
Rates are historically low.
Your Credit Score does make a difference to the rate
The Mortgage Broker turns up at Closing with the Money, Closing was a weird experiance, 2 hours signing paperwork. Buyer, seller and advisors all in the same room!
You can lock in to a fixed rate, sort of like playing chicken as if you lock some time out it will cost a bit more on the rate
You usually get Origination fees, a percentage of the loan you pay up front.
You get tax relief on all of the Interest at your highest marginal rate.
A link for info:
http://www.monstermoving.monster.com...nance/Comment/
I am sure it varies State by State as so many things do here, but just for guidance on CO:
Most people do use a Mortgage Broker.
For reasons I can not understand 30 year fixed is still the most popular, even when you know you will not be keeping the Mortgage anything like that time.
Rates are historically low.
Your Credit Score does make a difference to the rate
The Mortgage Broker turns up at Closing with the Money, Closing was a weird experiance, 2 hours signing paperwork. Buyer, seller and advisors all in the same room!
You can lock in to a fixed rate, sort of like playing chicken as if you lock some time out it will cost a bit more on the rate
You usually get Origination fees, a percentage of the loan you pay up front.
You get tax relief on all of the Interest at your highest marginal rate.
A link for info:
http://www.monstermoving.monster.com...nance/Comment/
Aug 5th 2004, 1:50 pm
#8
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
***How long have you been here/what you credit score?***
If you have been here a while and can't use an international check for whatever reason, your fico score is what determines whether you are sitting pretty, or get shafted with a sub-prime interest rate
I got an 80/10/10 loan which as DBJ says, helps you avoid PMI
DON'T pay points - they are bullshit
UNless you are looking to live in the property for a long time, DON'T get a fixed rate
Get an ARM (adjustable rate)
they range from 1 through to 7 years (so fixed for 7 years then adjustable)
Shop around - look at www.bankrate.com to compare rates
many brokers/mortgage companies will string you along - DON'T take their cr@p
Its like most things in the USA, most people are ignorant and get taken for a ride - its only when you are knowledgeable that you are in a position of strength
If you have been here a while and can't use an international check for whatever reason, your fico score is what determines whether you are sitting pretty, or get shafted with a sub-prime interest rate
I got an 80/10/10 loan which as DBJ says, helps you avoid PMI
DON'T pay points - they are bullshit
UNless you are looking to live in the property for a long time, DON'T get a fixed rate
Get an ARM (adjustable rate)
they range from 1 through to 7 years (so fixed for 7 years then adjustable)
Shop around - look at www.bankrate.com to compare rates
many brokers/mortgage companies will string you along - DON'T take their cr@p
Its like most things in the USA, most people are ignorant and get taken for a ride - its only when you are knowledgeable that you are in a position of strength
Aug 5th 2004, 1:59 pm
#9
Forum Regular
Joined: Aug 2001
Location: Bletchley, UK
Posts: 216
Re: Getting a mortgage?
Originally posted by Boiler
Your Credit Score does make a difference to the rate
Your Credit Score does make a difference to the rate
Virtually zero credit reporting history, 30 year fixed rate mortgage = 6%.
The guy at the bank told me that, unlike applying for non-secured credit, all they looked for was a BAD credit score, a ZERO credit score due to being an alien made no difference at all.
Aug 5th 2004, 2:03 pm
#10
Account Closed
Joined: Mar 2004
Posts: 2
www.bankrate.com to compare rates
For what its worth, I just looked at the Bankrate rate for when we took out our Mortgage (3/1 ARM) and it was what we are paying, I had not appreciated that rates had moved up so much in such a short time.
ARM's might not be for everyone, you are effectively buying Insurance locking in, just realise its cost and then its value to you.
But then they have just taken a hike in the UK.
The Bank of England has raised its base rate by a quarter of a percentage point to 4.75%
For what its worth, I just looked at the Bankrate rate for when we took out our Mortgage (3/1 ARM) and it was what we are paying, I had not appreciated that rates had moved up so much in such a short time.
ARM's might not be for everyone, you are effectively buying Insurance locking in, just realise its cost and then its value to you.
But then they have just taken a hike in the UK.
The Bank of England has raised its base rate by a quarter of a percentage point to 4.75%