Review of mortgage lending system in the United States

The cost of apartments in Russia is on average from 2 to 4 million rubles. In the capital level may be higher. The average cost of housing in Russia is much higher than the price of real estate in the United States. In the States house with 5 bedrooms can be purchased from 60 to 150 thousand dollars. Mortgage lending in the US is popular. In Russia there are banks with the best mortgage lending terms, but in the States to take credit for an apartment easier. The number of housing units purchased in the U.S. debt crossed the 90% of the total number of real estate transactions. In Russia the share of purchased apartments in the mortgage is 10%.

Mortgage in the US different from Russia. It is characterized by the following features:

The term of the mortgage.

The term of the mortgage in the United States and Russia coincide. It is from 5 to 30 years. But the citizens tend to pay off the mortgage in a short time. The peculiarity arises because of the high overpayment on the loan. The average annual interest rate on a mortgage loan in Russia is 12%. This is 2 times higher than the level of overpayment established by US banks. Americans have a well-developed system of refinancing. States banks allow to extinguish the loan on favorable terms.the us mortgage Annual percentage rate. In the US, the amount of overpayment depends on the Bank. Its size ranges from 3.5 to 7% per annum. The rate is influenced by the nationality of the borrower. Cooperation with the inhabitant of other country increases the risk of default. The annual percentage rate for foreigners increased from 1 to 2%. Overpayment depends on the type of bet. They can float — can change during the interaction with the Bank, and fixed — unchanged for the entire period of mortgage. The last type of bet is considered to be more reliable and stable. Varieties preferred by the people of Russia. In the United States uses floating rates, profitable in monetary terms for borrowers. The primary and secondary housing market. In the US, banks are reluctant to work with 2 kinds of markets. Apartments and houses are sold in unfinished form. This allows the Bank to provide collateral. In Russia, the situation is different. Buying housing on the primary market due to the risk unfinished. Therefore, banks rarely provide mortgages on these apartments. An initial contribution. Regardless of country of residence, the borrower who decides to take out a mortgage, you will have to pay a starting payment. An initial contribution of Russia and the United States is 10 to 50% of the price of the apartment. However, after analyzing the market, you can find a company providing loans for purchase of housing without initial payment. Taking into account the proposals, people will be able to calculate in advance the approximate cost of the loan.

Giving loans, banks in the US and Russia are based on documents of the borrower, confirming:

-residence and actual address of residence;

-financial status; age; type of activity;

-marital status;

-credit history

For registration of the mortgage will need the following paper:

-the contract of sale;

-assessment and verification of state acquired property;

-contract with the insurance company about homeowners insurance;

-documents on payment of past utility bills of property owners.

If a Russian citizen decides to register mortgages in the United States, the pendency of an application for a loan will be 30 days.

Features of the mortgages in the USA for foreigners:

Deciding to get a loan for the purchase of housing in the United States, you need to remember about the distance between countries.

-The cost of mortgages will increase the visa application procedure;

-spending on flights;

-the additional costs.

The foreigner receiving the loan for purchase of housing in the United States, will increase the total value of the property by several thousand dollars. The investment funds are met if the foreign citizen is going to move to USA either to take the property on lease. In Russia there are Bank branches, placing a mortgage for the purchase of real estate abroad. In such organizations to obtain a loan to purchase real estate in the United States easier.




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