With the great residential deals in Arizona and a strong Canadian currency and economy we’re now working with many Canadians who are paying full cash for their property. The market downturn has made securing U.S.-based financing more difficult for foreign buyers. Still, there are two options to consider and we’ll help guide you to the solution that works best for you: financing through a Canadian source (a home equity or personal line of credit) or financing with a U.S. bank for your Arizona purchase.
Financing in Canada and becoming an “all-cash” buyer in Arizona places you in a stronger position to negotiate on price for your purchase since the seller will be more confident of a close and influenced by the short escrow.
If you are financing the purchase of a home in Arizona the following is likely:
- You will need a minimum of 30%+ downpayment and potentially 3-6 months of reserves to cover the mortgage costs of the home.
- Funds for downpayment and reserves will need to be demonstrated with recent bank statements.
- Depending on your work status the lender is likely to require copy of pay stubs to verify income or, if retired, copies of recent T2′s and/or income tax returns.
- Other documents likely to be required are a Canadian passport and/or driver’s license.
- Some lenders may require a international credit report.
- When financing an investment home lenders may require a larger downpayment and/or may have other loan or approval restrictions.
With an appraisal on the home, the loan process generally takes between 3-4 weeks with more or less time needed depending upon timely execution of documents and escrow events.
If you are considering financing and are ready to begin your search for a home you’ll need to get pre-qualified as quickly as possible. We’ll put you in touch with the people that can put the best financing package in place whether up in Canada or with a lender right here in Phoenix. And we can direct you to experienced sources that could save you thousands on the currency exchange for your downpayment or cash purchase.
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