Listen to Aswathy, Daniel, Hugo, and Judy as they discuss the home buying process in the US. Topics include pre-approval, debt to income ratio, documentation requirements, negotiation strategies, and navigating the competitive housing market. They also provide advice on preparing financially and emphasize the rewarding feeling of homeownership.
Get pre-approved before starting the home search process to know your budget and avoid falling in love with an unattainable home.
The escrow period, lasting 30 to 45 days, is a crucial time involving inspections, appraisals, loan approvals, negotiations, and consideration of additional costs.
Deep dives
Importance of Pre-Approval Process and Documentation
When purchasing a home, it is crucial to get pre-approved before starting the search. This ensures that the buyer knows their budget and can avoid potential heartbreak by falling in love with a home they are not qualified for. The pre-approval process involves submitting an application, providing credit reports, and demonstrating income through pay stubs and W2 forms. It is essential to have all necessary documentation in order to have a comprehensive understanding of one's financial situation.
Factors for Determining Debt-to-Income Ratio
Debt-to-income ratio plays a significant role in the loan approval process. For nurses and other salaried individuals, the ratio is calculated by dividing total monthly debt obligations by total monthly income. It is generally recommended to keep this ratio below 50%. Different loan programs, such as FHA and conventional loans, have varying limitations on the debt-to-income ratio. Additionally, assets in the form of bank statements and retirement funds are required to show financial stability and the ability to cover down payments and closing costs.
The Escrow Process and Additional Costs
The escrow period, spanning 30 to 45 days, is a crucial time during the home buying journey. It involves several steps, including an inspection contingency, appraisal, and the final loan approval. Negotiations might occur during this time, with buyers looking for repairs or adjustments before closing on the loan. Additional costs beyond the mortgage payment, such as property taxes, community development fees, homeowners association fees, and utilities, should also be considered before purchasing a home.
The Rewards and Tips for Homebuyers
Buying a home comes with numerous advantages and rewards. It allows individuals to build equity while paying towards their own property instead of monthly rent. It's important to speak with professionals who can guide and explain the homebuying process. Saving money, monitoring and improving credit scores, and being patient are all essential parts of the journey. Familiarize yourself with necessary terms and assess personal priorities, such as proximity to good schools and essential amenities. Ultimately, purchasing a home marks a significant achievement and an important step towards fulfilling the American dream.
Today, Luciana will speak with Aswathy, Daniel, Hugo, and Judy about how to purchase a home in the US.
This is the second half of the conversation so if you haven't heard the first one yet, please have a listen to last week's episode.
This series is brought to you by AMN Healthcare International. We're a nursing recruitment agency that offers International Nurse Candidates the best placement options for direct-hire positions in the United States’ healthcare industry. As one of the leading healthcare recruitment agencies, specializing in international nursing jobs in the United States alongside permanent resident green card acquisition, we partner with healthcare facilities across the US to find the best fit for our healthcare workers. We work personally with each candidate to create a successful, long-term partnership between client and candidate, and our service always comes free of charge to our healthcare workers. If you’re thinking about making the step to living and working as a healthcare worker in the USA, then why not enlist the help of one of the top medical staffing agencies? Head over to amnhealthcare.com/international, to find out more.
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