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Home Buying Tips for New U.S. Citizens

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The home buying process is often daunting for many people, but for those who are new U.S. citizens, the task can be particularly difficult. However, having a house to oneself is a dream for many immigrants, and there are options available that can help make the process easier to navigate. 

In order to help get your footing on the home buying process as a new U.S. citizen, here are a few tips and resources you can utilize to make your journey as easy as possible.

Save Early

While there are first-time homeowners loans available that immigrants should certainly take advantage of, these loans still require a down payment of 3.5%. Therefore, saving money in advance is imperative to the process. 

Signing up for a bank account in the United States as a new citizen can be difficult, especially due to the potential lack of a U.S. credit score. However, there are now online banks that don’t require credit checks to sign up, allowing you to have a safe place to save your money during your home buying process.

Build Credit

As mentioned previously, credit scores play a major role in the home buying process; your credit history will impact the interest rates and loan amounts you have access to. This applies to most mortgage services, aside from a few agencies that perform underwriting for home buyers and don’t take credit score into account when applying.

However, there are options available for new citizens looking to build their credit. One option would be to use your international credit report to get credit in the United States. This means that you won’t need to spend time signing up for credit cards and building credit, if you have a solid credit score from your previous nation of residence.

Find Community Support

Remember that the home buying process isn’t something that you need to take on all by yourself. Through the support of your friends, family, and other members of your local community, you can find a great network of people who have been through the home buying process themselves. Many of them would be more than willing to provide insights and advice on how to navigate it in the best, most cost-effective way. 

Finally, look for real estate agents that have experience working with new citizens, as they can often point you in the direction of the best resources for you to utilize while searching for a home. They will also be more understanding of your current situation, and give you the time and advice you need, to avoid rushing into the process and overspending, or settling on a home you don’t enjoy. At the end of the day, being a homeowner is a wonderful experience, and the day you finally sign the final deal will be incredibly rewarding.

Relatable articles: Why “We Buy Houses for Cash” is a Bad Idea

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New Year, New Home? How to Tell if You’re Ready to Buy

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So you’ve decided to make the jump.

Maybe you want to be able to paint the walls any color you’d like, or have a backyard for your dog to play in. Maybe you’re just tired of having the expense of rent instead of the investment of homeownership. We hear you, and you’re right, homeownership comes with many advantages. Before you start picking patterns for curtains, you’ve got a few other things to work out. Here’s what you need to ask yourself to decide if you’re ready to buy a home.

What’s your money situation?

More than likely you’re going to need a loan to buy your home, especially if this is your first home purchase. In this case, the first step is to talk with a mortgage lender to find out exactly what you are approved for. They’ll talk with you and find out what your current assets and debts are. They’ll ask about your income, check your credit score, and basically assess the situation to help you figure out where you’re at. Once you know the general math, you’ll be able to start looking for a home. One thing to consider, though, is that home prices are not all-inclusive. If you buy a home for $150,000, that’s not the only price you’re liable to pay right away. You’ll be expected to pay homeowners insurance, closing costs, and sometimes Homeowners Association fees all right away as well. All this needs to be factored into your math when purchasing your home.

What does your future hold?

While no one can predict the future, you should have a guess of what the next few months, and ideally years, hold for you. Shortly after closing on a new home is not the time to quit your steady job in favor of becoming a freelance harmonica tuner. (no matter what the couples in House Hunters make you think). You’re also going to want to make sure your new home is in an area you’d like to stay in. Are you planning to stay put for a while or are you thinking of leaving the country to teach abroad? If you have children or intend to, how are the schools in the area? Will you have enough bedrooms? Does the neighborhood seem safe? Sure, if you find that you don’t want to or can’t live in your house after a few months or years, you do have options. You could sell or rent it out, but both of those options come with their own challenges.

Are you being realistic?

Sure, you want to find your dream home in a wonderful location priced below your budget, but that rarely happens. More often you’re going to have to make some concessions when it comes to finding the right home. Is having a detached garage a real deal breaker for you or can you overlook that fact for a spacious kitchen? Do you have your heart set on a charming old Victorian home, but cringe at the thought of making significant updates right off the bat? Will you be able to afford the utility costs of heating/cooling/lighting a 7300 square foot home or would you be better suited for a smaller place? Do you really want to move you, your spouse, and 3 Great Danes into a “tiny home”? These are all things that need to be considered. You’re better off by recognizing these trade-offs in the beginning and addressing them than to ignore the reality of your situation.

Owning a home is an investment, but choosing the right one and making sure you’re ready, both financially and otherwise, are the biggest factors in making the decision successful. Long story short, you should buy because you’re ready, not because you think you need to. Whether you’re just browsing or are ready to take the plunge, RealtyHive can help. Check out our upcoming auctions to find homes in your area at the best value!

 

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