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Mortgage Surprise

Mortgage Surprise

Old May 22nd 2011, 8:59 pm
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Default Mortgage Surprise

So after reading all the really informative threads on here, I've been spending a lot of time trying to get my finances in order ready for my move to Los Angeles on July 3rd.

We are going on an L1A and were originally planning to rent a property on the basis that we thought there was very little chance of getting a mortgage given that we would have no credit rating.

However, after some further reading and investigation, it transpired that it was indeed possible, even at relatively high levels. (Mortgage is just under $1M).

We've been pre-approved by Wells Fargo, based on a 20% deposit and a further 10% being available in our account in "liquid assets" after closing. So it seems if you have 30% of the purchase price, you can get a mortgage without the need for a US credit rating.

The interest rate on offer is 5.1%, 30 fixed rate, so not too bad in my opinion.

My credit rating in the UK was pretty good and they did look into this and asked for evidence of the rating which I provided via creditexpert.co.uk

I thought I would post this as an example that it can be done, even if the requirements are a little stringent.
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Old May 22nd 2011, 9:14 pm
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Default Re: Mortgage Surprise

I wouldn't buy without a green card no matter what.
It's hard to sell a normal $200,000 house in CA right now, a million dollar one can take a long time. If your job/company goes pear shaped you will be stuck trying to sell and move.
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Old May 22nd 2011, 9:23 pm
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Default Re: Mortgage Surprise

Originally Posted by Mummy in the foothills View Post
I wouldn't buy without a green card no matter what.
It's hard to sell a normal $200,000 house in CA right now, a million dollar one can take a long time. If your job/company goes pear shaped you will be stuck trying to sell and move.
Or worse...have to leave the US within "X" number of days with an unsold house.
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Old May 22nd 2011, 9:25 pm
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Default Re: Mortgage Surprise

My GC application is going in pretty much immediately and I'm coming over to run the US division of a company that I initially set up on behalf of some investors, who I report directly to. I have had a very long business relationship with them and have a long term deal.

If I was coming over as a standard "employee" then I would totally agree with you, however, my situation is slightly different.

In the worst case scenario of not getting the green card, then I have 3 years of my L1 to sell the house.
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Old May 22nd 2011, 9:27 pm
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Default Re: Mortgage Surprise

I should also add that the pre-approval was secured through the Wells Fargo inbound immigrant scheme, via AIG's Travel Guard programme
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Old May 22nd 2011, 10:06 pm
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Default Re: Mortgage Surprise

Originally Posted by IanH88 View Post
My GC application is going in pretty much immediately and I'm coming over to run the US division of a company that I initially set up on behalf of some investors, who I report directly to. I have had a very long business relationship with them and have a long term deal.

If I was coming over as a standard "employee" then I would totally agree with you, however, my situation is slightly different.

In the worst case scenario of not getting the green card, then I have 3 years of my L1 to sell the house.
Good luck on your move to California, I am sure you will enjoy the lifestyle and the weather
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Old May 22nd 2011, 10:44 pm
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Default Re: Mortgage Surprise

Pre-approval isn't necessarily the same as closed. Lots of people get pre-approval but when it comes to closing it becomes a different matter.
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Old May 22nd 2011, 10:52 pm
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Default Re: Mortgage Surprise

Originally Posted by sir_eccles View Post
Pre-approval isn't necessarily the same as closed. Lots of people get pre-approval but when it comes to closing it becomes a different matter.
Yep -- post again when the fat lady has sung.
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Old May 22nd 2011, 11:07 pm
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Default Re: Mortgage Surprise

It's still a dumb idea to buy until you have a greencard.

If you got laid off a week into your stay here, you'd be up creek without a paddle and then lumbered with a really expensive hassle of off loading a house, that'll have a massive selling cost that you don't have as a first time buyer.

Sure, you might be in a senior position, but that's not to say they won't drop you, it has happened to a lot of people here.

Sure you might have up to 3 years on the L1 if the GC doesn't work out and they don't drop you, but 6% selling cost on a $1M home is a big chunk of change.
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Old May 23rd 2011, 1:20 am
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Default Re: Mortgage Surprise

Surely if you loose the job for what ever reason then you loose the L1A too as it's an intra-company transfer?

I came on the L1A and that's what my attorney told me.
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Old May 23rd 2011, 2:21 am
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Default Re: Mortgage Surprise

Originally Posted by IanH88 View Post
My GC application is going in pretty much immediately and I'm coming over to run the US division of a company that I initially set up on behalf of some investors, who I report directly to. I have had a very long business relationship with them and have a long term deal.

If I was coming over as a standard "employee" then I would totally agree with you, however, my situation is slightly different.

In the worst case scenario of not getting the green card, then I have 3 years of my L1 to sell the house.
Unless you don't get your greencard and you get made redundant, then you have 14 days to leave the country, not easy in any circumstance but with a $1m house to sell
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Old May 23rd 2011, 3:54 am
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Default Re: Mortgage Surprise

We bought our home here in Houston under the very same Wells Fargo inbound program as well. 20% down, proof of work/salary here in USA, some rudimentary digging into our UK assets, and our promise to provide SSNs when we got them.

However, my husband came as a spouse of a USC, so green card was in hand when we worked through this process.

We could not go through traditional mortgages as I (USC) had not lived in the US for decades and had no credit whatsoever.

We were quite happy with WF's program and the mortgage rate couldn't be beat at 3.7% 5 year ARM. (Relax, we could do that as it was paid off already. Just had to wait for the $ from the UK home sale.) Otherwise, we'd taken the 15 year fixed at 4.5%. Not bad for this program all around. We recommend it to all folks coming in.

ETA: I too agree with the other folks - for $1M, I'd have waited for the green card. Sheesh, that is a big nut to deal with if the GC doesn't come through for some odd reason.
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Old May 23rd 2011, 7:33 am
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Default Re: Mortgage Surprise

Originally Posted by sir_eccles View Post
Pre-approval isn't necessarily the same as closed. Lots of people get pre-approval but when it comes to closing it becomes a different matter.
Pre-approval is better than pre-qualified. Under most circumstances the bank will honor the commitment if you are pre-approved but is less likely if you are pre-qualified.
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Old May 23rd 2011, 7:38 am
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Default Re: Mortgage Surprise

Originally Posted by IanH88 View Post
I should also add that the pre-approval was secured through the Wells Fargo inbound immigrant scheme, via AIG's Travel Guard programme
Thats interesting to Know.
Calabasas is beautiful
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Old May 23rd 2011, 7:41 am
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Default Re: Mortgage Surprise

Originally Posted by Mummy in the foothills View Post
I wouldn't buy without a green card no matter what.
It's hard to sell a normal $200,000 house in CA right now, a million dollar one can take a long time. If your job/company goes pear shaped you will be stuck trying to sell and move.
with all due respect i dont think the OP is concerned he is purchasing a
$1M dollar home and putting $300,000
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