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Financing for foreigners

 

 

 

 

 

 

 

 

 

 

 

 

 

Usually the documentation is  very similar to what Brazilian banks require for a bank loan. Interest rates are set by the US central bank and cannot be predicted and guaranteed by any professional. They vary between 4.75% and 5.75%, for fixed interest for 5 years (5 year ARM) and revalued after 5 years, amortized over 30 years; or up to 6.25%, fixed for 30 years.

 

A mortgage consultant will be able to assist the buyer in this process, which greatly facilitates the entire transaction. This consultant will charge the home buyer for his services, but it is well worth using a professional who knows how to deal with the bureaucracy of American banks. This is not mandatory, but highly recommended.

 

 

 

Necessary documents

Each bank applies a different evaluation criterion, therefore, the necessary documents may vary depending on the chosen bank.

 

Be prepared to present the following documents:

1 - Completed registration form

2 - Copy of passport, data page and visa

3 - Personal financial statement (Income and Expenses) and a simple letter listing your assets

4. Two letters of reference (letters of suitability) from credit cards or car loans that specify the loan date and current balance.

5. Two months of bank statements (personal account) showing the amount available for down payment. This amount must be available for at least 60 days in the same bank account (individual).

6. Current account statement showing withdrawal for payment of purchase deposit.

7. Income tax return for the last two years. (complete IR)

8. Credit report from your country (via SERASA). This report will be requested by the financial bank.

9. Proof of income:

 

       As a business owner: Letter from the accountant certifying the name of the company, percentage of shares held in the company, type of business, time the company has been in operation (at least two years of operation). The letter must include the total amount of wages and dividends received in the last two fiscal years, up to the present date.

Analytical balance sheet of the company for the last two fiscal years, up to the present date and a copy of the accountant's license - CRC

    As an employee:  Letter from the employer, on company letterhead and signed by the company representative, certifying the position held, type of work, start date, current salary, and total salaries received in the last two fiscal years and up to the present date, in addition to the last two payment receipts (paycheck, pay stub) or proof of automatic direct deposit into your account.

       

In both cases, wages received must appear on the bank statements provided.

Phone number and email address for employment verification may be requested.

 

 

 

 

Closing process (purchase signature) and account opening. 

Normally, banks that finance foreigners require the client to open an account at one of their branches, so that the mortgage is automatically debited from this account.

The buyer must open this account in person, appearing at the agency with the passport and a second form of identification (it can be the Brazilian RG) and a small amount of money to be able to open the account (from $25 to $100). The opening of the account may be a few days before the signing of the deed.

Once everything is approved, the bank will confirm the closing date (date established by the builder when the property is new or agreed by the buyer and seller in the case of a resale), and will send the mortgage documents, to be signed together with the purchase documents . On this day the buyer must also be present to sign the papers. Currently, banks no longer accept attorneys to sign financing. Banks are taking precautions against fraud, requiring the buyer of the property to appear on the closing day. Another option would be to sign at an American consulate in another country.

In the case of cash purchases, there is no need for the buyer to be present on the closing day, since, for cash purchases, the buyer's signature does not need to be recognized. 

But who doesn't want to be the first to receive the keys when buying their property in the United States?????

 

It is necessary to know that not all properties are financable. Today, few banks finance apartments (known as condominiums), because this type of property is considered a risky property. (Request more information about this detail, via email).