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.
The content of UrbBurb.com is for general information purposes only and does not constitute advice. UrbBurb, LLC tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors to UrbBurb.com should not act upon its content or information without first seeking appropriate professional advice.
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