01
The entire consultation given in advance is without obligation and at no cost. The intense exchange of information is important so that
a) the process of buying your dream house can be planned optimally and
b) we can advise you individually and personally with as much detail as possible.
02
First and foremost, inform yourself about whether the property you wish to finance is actually financeable. Land loans in most states for example are not available for foreign borrowers at the moment. As consultants we are constantly working closely with a number of banks and therefore have a better overview and comparisons about financing possibilities than a single U.S. bank.
03
Upon request we will be glad to provide you with a "Pre-Approval". This is a form showing that you are pre-qualified for a specific purchase price and a corresponding loan amount. The pre-approval is based on your revenue/expenditure ratio as well as the potential available equity which you can and want to include into your home purchase. For this you do not have to provide any proof. You can have the pre-approval issued at any point in advance. Regardless of when you want to buy your home.
04
We will create a statement of costs for you which is called a "Good Faith Estimate". In this statement an estimate of all costs will be listed which are connected to the financing but also general costs related to the property purchase. The calculation will show you the estimated amount of the expected capital acquisition costs ("Closing Costs"), the amount you must have ready for the closing as well as the amount of your future monthly charges.
05
Sometime between point 1 and 4 you will sign the sales contract for your dream house. Financing in the U.S. is very object-based which is why you need to have a purchase contract first before you can sign a mortgage application.
06
For your own safety: Make sure that a financing clause ("Finance Contingency") is included in the purchase contract. This states that you can withdraw from the contract and get your deposit back in case financing should not occur. We will gladly review your contract for the correct clause before you sign it.
07
Make the loan application. In the application information regarding the real estate will be made, as well as regarding your residence, your income and your assets ratio. After setting up the application the application fees will be due as well. These application fees are used for payment for the third party costs which accrue during the loan process such as the estimate, courier costs, translations, etc.
08
Along with the application we will provide you with a customized list of the necessary documents. In addition you will receive the corresponding sample letters for the banks, credit card companies, employers, tax consultants, etc.
09
As soon as your documents are completed and available we will present your file to the U.S. bank. The bank will check everything closely ("Underwriting") and will then issue a loan commitment ("Conditional Loan Approval"). This loan commitment may potentially contain some open conditions, for example yet to be provided evidence as well as reports regarding the market value of your dream house.
10
For a loan the U.S. bank will require a state certified, licensed appraiser to do an appraisal. The appraisal is ordered directly from the bank thru a 3rd party company. The appraisal is a comparison of the subject property with three to six properties similar in location and design. These comparison properties have to be located within one mile and must have been sold within the past few months. The current market and resale value is determined this way. You will always receive a copy of this appraisal. The lower amount of the purchase price or the appraisal will be used to estimate the actual mortgage lending with the U.S.-credit bank.
11
If all conditions are cleared the so called "Commitment" will be written up. This is the final loan commitment. When this is presented we will order the remaining services, which will arise in relation to your financing, for example the so called "Survey", the surveying of the property- and building boundaries.
12
Once all these steps are completed, the bank will transfer the documents to the title company or to your U.S. attorney. There the complete step-by-step process will take place and includes fiduciary and notary functions. During the loan processing the title company or the attorney will check if there are other potential third party claims against the property existing in written form (reinsured), so that the property can be handed over unencumbered and without further claims; having a clear title.
13
Should you be in the U.S. during the time of the closing, you will come on the agreed upon date with your passport to sign for the title company or the attorney in his office.
14
Should you not be in the U.S. during this time, as is the case most of the time, we will send the closing documents to you via email. You will sign these documents, have them notarized by your attorney or the U.S. consulate, and will then send them back to the title company via courier (FedEx).
15
At the time of the closing, the actual completion, your equity will have to be transferred and received in the escrow account of the title company. The "Cash-to-Close" comes together from your deposit, the capital acquisition costs and reserves as well as six months of payments in most cases.
16
On the day of the closing the title company will pay the purchase price to the seller and will put you down as the new owner.
17
You will receive the key to your dream house on the day of the closing. Should you not be present during the closing, a trusted person such as your real estate agent can take the keys and immediately re-register for electricity etc.
18
If you set up direct deposit, your monthly mortgage payments will then be deducted from your U.S. account by direct debit from now on. At no point of the entire transaction will you have to be present in the U.S. but instead can do (have everything done) via email, couriers, fax and telephone.
