Canadian citizens considering a purchase of real estate in the United States need to know several things before beginning the process. Naturally, one of the primary issues is where to make the purchase, and interestingly enough, there is a large influx of buyers in the Phoenix, AZ real estate market. The reasons that so many are choosing this area are numerous, but include the incredibly good pricing, the quality of the communities, and the remarkable mortgage rates.
With that said, however, it is important to understand that Canadian buyers have financing options which can be a bit different than American buyers. For one thing, Phoenix Arizona homes acquired as a second or a vacation property will come with more favorable terms and rates. The borrower will usually be required to sign some sort of documentation agreeing that the property will not be rented or earn any income for the owner, as this would change the way in which the home would be handled.
Because the area is so wildly popular, many Canadians do consider investment properties over retirement ones and both the Phoenix and Scottsdale real estate markets are incredibly busy with these types of acquisitions too. The financing terms for this sort of loan will be much stricter and will require more than 30% towards the down payment, and will also have to be able to demonstrate around 12 months of liquid reserves. This is quite different from vacation property terms, which tend to require a down payment in the same range, but usually less than six months of liquid reserves. Canadians need to contact one of the real estate investment companies to help with this process.
Rates and some of the terms may vary on a case by case basis, but in general it is going to be the non-income generating purchases with the “loosest” financial arrangements. When looking for Phoenix and Scottsdale homes for sale, however, it is a very wise idea to get “pre-approval” through the selected lender. This means that the mortgage company or bank will review the borrower’s financial scenario and provide them with a pre-approved maximum loan amount. This helps when shopping for homes because it tells the buyer which properties are within their price range.
This also helps significantly when looking for a Phoenix or Scottsdale foreclosure property too. This is because many need only a bit of repair or updating to be bumped back up into a significantly higher bracket, and knowing the budget allows very accurate decision making. Search the MLS for foreclosure properties.
Luckily, The Holm Group has 15 years of experience helping buyers through every step of the real estate purchase process. They are aligned with the top mortgage lenders in the state and are there to lead buyers from the pre-qualification process through the final sale. Fill out the short form below to find out more about purchasing investment property in Phoenix.