Mortgage: how does it work?

Mortgage is a very common topic, so many use this modality.

As a result, it is common to have doubts about what a mortgage is, how it works, and who can hire it.

After all, can immigrants take out a mortgage in the USA?

These and other questions will be answered throughout the following content.

So, to understand everything about the American mortgage, don’t miss the content!

What is a mortgage in the US?

Before we move on to other explanations, it is important to understand what a mortgage is in the USA.

This is because, if in other countries loans and financing are common modalities, there, mortgages are highlighted.

A mortgage is a type of credit in which a property is presented as collateral.

Thus, when a person takes out a mortgage, they receive an amount as a loan, and place a property as guarantee for payment.

Therefore, if the contractor is unable to pay the amount borrowed, his property will be taken over by the creditor bank.

This means that the former owner loses the property, which becomes the bank’s priority.

This is a common modality around the world, but in other countries it is usually called “loan with property as collateral”.

In the United States of America, this tends to be the most common type of credit.

However, it is worth mentioning that the mortgage can also be taken out to finance property.

In this case, the financed property itself serves as collateral, therefore, if the contractor does not pay the loan, he will lose the property.

It is worth mentioning that in the case of a mortgage, the property is in the name of the holder, therefore, it does not belong to the bank.

However, in case of default in paying the financing installments, the bank has the right to take the property, as it was used as collateral.

So, in mortgage financing, the bank does not own the property, even if the purchase price comes from a loan through it.

After knowing what a mortgage is in the USA, it is common to have questions about who can take out one.

It is important to say that this is a very common modality in the country, therefore, many financial institutions offer it.

This way, hiring opportunities are not restricted.

This is because, as long as you meet the income analysis criteria, and present the necessary guarantees, the bank can grant credit.

Therefore, to take out a mortgage, you simply need to be the owner of a property with confirmation of repayment, or in financing.

In addition, the bank will ask you to prove your income, to assess whether you can afford the payments.

If you pass these assessments, your mortgage will be approved.

It is known that immigration rules in the USA are very strict.

Therefore, the approval of credits and loans have some specific rules for immigrants.

But what about mortgages in the US? Can immigrants join?

The answer to this question is yes, as long as the immigrant in question is in the country in a regular situation.

This means that the applicant must have a Green Card.

It is worth mentioning that you do not need to have a permanent residence in the country, as long as you have a Green Card.

Finally, the exact mortgage rules for immigrants vary depending on the banking institution, but it is a real possibility.

Now you know what a mortgage is in the USA, and understand who can apply.

With that, all we need to do is explain how to carry out this process.

The first thing to do is gather your personal documentation, including proof of income and documents for the property that will serve as collateral.

Once done, look for a financial institution that offers this type of service.

Carry out the simulation, requesting the desired values and informing the details of the property under guarantee.

After this simulation, the bank will have a proposal for you.

If the proposal matches what you need, simply close the contract and complete your mortgage.

It is worth mentioning that you can make a quote with several banks to find the best rates.

It’s quite simple to take out a mortgage in the USA, as long as you meet the criteria and have a property to offer as collateral!

Roberta 3 de outubro de 2023