Buy a new house

A

atllab

Registered Users (C)
Hi! Guys and Gals,

I am thinking to buy a new house...I am working on EAD..I spoke to couple of agents and they are saying that since I don't have green card or U.S. citizenship, the rate of interest will be higher than what is current...In other words, I will have to take "Tax Id" loan instead of conventional...

My question:

Is this true that I will have to pay higher rate of interest?

Some of you might have bought house and may or may not encountered this problem...

Could you please shed light on this...I will really appreciate your answers...

Thanks,

Eb3 India Sept. 2002,
I140/I485 Oct. 8 , 2004
I140 approved = Feb. 18, 2005
I485 approved date == ???????? LUD changed May4, 2005 after FP, Lud changed July 1, 2005, July 5,2005.
FP = May3, 2005 (code 3)
EAD1 RD = Oct. 8,2004 Approved November 10,2004
AP1 RD = Oct. 8,2004 Approved November 16,2004
EAD2 RD = Sep. 1,2005 Approved September 8,2005
AP2 RD = Sep. 1,2005 Approved September 9,2005
 
It is not true. You are eligible for the best rate just like the other Americans, according to your credit report/ history unless your purchase is for the investment.

Yes, you should buy the house because of the visa retrogression and you may have to wait for a long time. Every I485 pending person should consider this option for your better life.

When you apply for the home loan, the lender does not care much about your status but your work history, wage and credit score. Even if you are only the H-1B (has not filed I485) but has worked for several years, you are still eligible for the best loan interest rate. Of course, you must have a SSN.

If the lender asks you a little more about your status, just simply tell her your GC is pending and will be approved soon. If the lender makes the problem complicated, then you simply go with the other lender such as the Bank of America.
 
Check with More Lenders

It is true whatever these broker's are telling you but rate does not affect your rate directly. Shop around with direct banks first. Sometimes local banks manager will be more useful to handle your case than broker. Always remember do not apply at too many places as it may affect your credit score. Check with ING, CountryWide websites loan products. Select right loan type ARM vs Fixed and check Upfront Brokers.
I have never heard of Tax ID Loan? Ask for the loan information. My guess is that this loan type is for Foreign Investors staying abroad or "people" with out SSN. but in your case you are resident here. So stay away from this loan.
You always need to use SSN for the application.
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atllab said:
Hi! Guys and Gals,

I am thinking to buy a new house...I am working on EAD..I spoke to couple of agents and they are saying that since I don't have green card or U.S. citizenship, the rate of interest will be higher than what is current...In other words, I will have to take "Tax Id" loan instead of conventional...

My question:

Is this true that I will have to pay higher rate of interest?

Some of you might have bought house and may or may not encountered this problem...

Could you please shed light on this...I will really appreciate your answers...

Thanks,

Eb3 India Sept. 2002,
I140/I485 Oct. 8 , 2004
I140 approved = Feb. 18, 2005
I485 approved date == ???????? LUD changed May4, 2005 after FP, Lud changed July 1, 2005, July 5,2005.
FP = May3, 2005 (code 3)
EAD1 RD = Oct. 8,2004 Approved November 10,2004
AP1 RD = Oct. 8,2004 Approved November 16,2004
EAD2 RD = Sep. 1,2005 Approved September 8,2005
AP2 RD = Sep. 1,2005 Approved September 9,2005
Click to expand...
 
Last edited by a moderator:
Compiler and sudh,

Thanks for your reply..I have been working for the same employer for more than 5 years and living at same place for more than 6 years..My credit score is excellent...I will talk to local banks...Let's see what they say...


Yes becasue of this retrogression only, I finally decided to buy a house...
 
The rate should not matter if you are on EAD or GC. In both cases you should get the best deal. Last year I bought it on EAD and nobody asked my status.
Good luck, this will change your life and stop thinking of GC everyday.
 
Similar situation , just bought a house

atlab,

I am in a similar situation and just bought a house last month.
Not having GC will not affect interest rates.

Thx....
 
atllab said:
I spoke to couple of agents and they are saying that since I don't have green card or U.S. citizenship, the rate of interest will be higher than what is current...In other words, I will have to take "Tax Id" loan instead of conventional...
Click to expand...


I took home loan 3 - 4 years back when I was still on H1b. I paid the regular rates ... Go directly to the Banks for the loan.
 
I purchased a new home 6 months back in Florida. No one asked me about my GC status. I just produced copies of my GC filing application. As suggested by Compiler your rate of interest has nothing to do with GC or permanent status what matters is the duration of your stay here, your credit score, consistent employment history and salary of course.
Good Luck!
 
How do you get pre-approved?

I am too currently on H1 and in the exact similer situation. Am planning to buy a house. But I have heard it is better to get pre-approved before you go hunting for the house. Can someone please point me on how do I go about getting pre-approved. Also if the lender that pre-approves me does not give a good rate, should I then try another lender? If so, haveing mulitple credit checks.... would it effect my credit score? Please help..
 
Your status should have no bearing on your ability to get the best rate. Just rememeber you should not personally bring up the question about your status. If you ask the agen 'I am on H1m and not a permanant resident, can I get a loan", you are inviting trouble. These agents are not sure about the answert yourself, and may confuse you furthor. So unles somone specifically asks, do not volunteer this information from your end.
 
Thanks guys for your input...

nkimmigration,

I ran my credit history report few months ago and based on that I talk to every agent..They ask me about my social and i just tell them my score(I know current score could be different little bit) to get rates...I have heard that every time any agent pulls your credit score it affects your credit history...I have also heard that you can ask certain number of agents to pull your credit score in certain days since your first mortgage inquiry ..I am not sure about it...
 
Thanks atllab,

But, I am wondering about the pre-approval. How do I go about getting that? I need to do this soon, very soon.... within a week. So any guidance would help temendously..

Thanks,
-nk..

atllab said:
Thanks guys for your input...

nkimmigration,

I ran my credit history report few months ago and based on that I talk to every agent..They ask me about my social and i just tell them my score(I know current score could be different little bit) to get rates...I have heard that every time any agent pulls your credit score it affects your credit history...I have also heard that you can ask certain number of agents to pull your credit score in certain days since your first mortgage inquiry ..I am not sure about it...
Click to expand...
 
pre-approval is a lender confirming they will give you a mortgate at the time of closing on the house. It is beneficial when negotiating as it demonstrates that you are a serious buyer. Without pre-approval the seller does not know if you can qualify for a mortgate and/or get the rate you need in order to afford the house. Any lender should offer it providing you supply the necessary information and your credit/income/debt are ok

Make sure you get a home warranty or that the seller includes one and also put a condition in the offer letter that the purchase is contingent on getting the mortgate that you want e.g. rate not to exceed X percent.
 
Mortgage Application Process

Pre-Approval is not commitment but just intend to lend money based on house "Appraisal" value. This letter helps to build your case that you are serious home buyer and seller should feel comfortable that this deal/transaction will go through without any problems. For him he has put lot of time and money to market this house so if he chooses wrong purchaser and deal does not go through, there will be plenty of things he will loose. Hence you required Pre-Approval letter to make your case strong. THis also helps to you to know how far you can get loan amount.
I will say that first decide about
How long you are going to stay in the house (avg american changes house within 7 years)
What type of loan you want to buy Interest Only? Do you want to have 2nd lien or home equity loan? (understand Risk associated with each type)
Which lender is better? (based on current interest rate and service)
Then you apply for Pre-Approval. Always remember Pre-Approval is like warrenty for your financial strength to get loan. Big Assumption is that the property which you will select needs to fit your Lender's criteria for the loan.
Do not rush. This is THE biggest transaction you will be dealing in your life.
Always consult with your friends and family. I am not scaring you but understand the risk and make good investment.
Good Luck

http://www.realtor.com/Basics/Buy/Looking/PreApp.asp?poe=homestore&gate=homestore
 
just wondering ...

to get a better rate .. is our credit score need to be above 750 ?? and income need to be above 50K per year? thx for the answer.
 
good score

:) 750 + is a very good score. Go to bankrate.com. They have calculators on how much house you can afford based on your income.
 
Both factors affect how much you can borrow

There are 3 credit agencies which track your scores.. most of the lenders check your credit against all three reports and used middle score (if only two score present then use minimum). The scoring model used by bank is FICO.
Fico score drives your interest rate but not directly. Lenders/Bankers intereset/business model drives your offered interest rate. Sometimes bank do not give loan if your score is very low (that time either you correct your credit or) there are sub prime lenders who will will give loan with low credit score but they will charge you higher interest rates.. (it is so not correct that people not having enough money to pay back in right time time..get bad credit.. hence they have to pay high interest rate..which drives payment more.. which drives not paying that payment again...life is funny)
Anyway, now coming back to Annual Income.. that will drive how much amount bank will lend you. Avg. lender will got give loan more than 36% percent of monthly payment (it is called back ratio or back end ratio). because of Interest Only, ARM, Fixed loan types, now a days you can lend more money but be careful and always understand what that option means..
good luck..
 
Most probably a Tax Id loan is for illegals immigrants - they cannot (legally) get a SSN but banks nowadays still want to do business with them. The IRS on the other hand reportedly doesn't care if someone is here legally or not as long as they pay taxes. Therefore the Tax ID loan type. It is easily obvious why they would charge more interest on those loans...
Since you have a SSN and EAD there should be no problem getting a regilar loan. If not you can complain since most lenders call themselves (equal opportunity lenders).

atllab said:
I spoke to couple of agents and they are saying that since I don't have green card or U.S. citizenship, the rate of interest will be higher than what is current...In other words, I will have to take "Tax Id" loan instead of conventional...
Click to expand...
 
Secondary mortgage

If you are putting a down payment of 20%, you should have no difference from rest of the world on the rate of interest.

If you are going to Put less than 20% as downpayment and you will be taking a mortgage insurance, your secondary mortgage rate will relatively be higher than other guys such as GC Holders and Americans.


But the monthly installment will make very little difference in terms of secondary mortgage as it points to only rest of the money to make up the difference to 80%.
 
Mortgage For IMMIGRANT

Just put the contract for our first house.
If anyone is charging you more interest rate (because you are on H1B or EAD) because of immigration status.. let me know.. I do know some Lenders which do not charge more interest rate...
If you are Alien and not staying in US (investment property) then there are higher interest rates...
 
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