In recent years, the number of properties that Canadians own in the United States has increased significantly. In fact, Canadians are the biggest foreign investors in the United States real estate, having invested over $5.4 billion. According to a report by the National Association of Realtors, 25% of Canadians investing in US real estate have chosen to buy property in Arizona.
Are you from Canada, and you want to buy a house in the State of Arizona? This step-by-step will take you through the property-buying process. Stick around to learn more.
Can Canadians Acquire Property in Arizona?
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As mentioned, Arizona is among the States that most Canadians prefer to buy houses. So, yes! a Canadian can buy a house in Arizona. Data from the National Association of Realtors indicates that 58% of Canadians buy houses in Arizona for vacation purposes, 30% for residential rentals, and 12% for primary residences.
Can a Canadian Secure a Mortgage in the State of Arizona?
Yes, it is possible for a Canadian to obtain a mortgage to finance a home purchase in Arizona. The American mortgage system caters to Canadians with and without a United States credit history. If you do not have a US credit history, you can apply for a Foreign National Mortgage and DSCR Mortgage. If you have a US credit history, apply for a Federal Housing Administration or conventional loan.
How to Buy a House in Arizona as a Canadian
Follow these steps to acquire your dream property in Arizona:
Determine the Purpose of the Property and Your Budget
When looking to buy a house, ask yourself what you intend to do with it. Is it a vacation home, your retirement haven, or for business? Having answers to these questions will help you find your ideal property faster.
Formulate a comprehensive budget that includes all the costs of buying a house in Arizona. Consider the property’s buying price, taxes, closing costs and many more. Understanding the amount of money you are going to commit to buy property is important.
Find an Ideal Lender
Do you wish to buy the house using a mortgage? If so, it is time to find the right lender. As a Canadian, it is advisable to look for lenders in the United States that offer financing options for foreigners. If you find this challenging, you can hire a mortgage broker to help you find the best lenders that suit your financial needs.
Select the Right Location
Take time to explore Arizona to discover the ideal location for acquiring property. When choosing the location, you may want to consider factors like amenities, climate, and transport system. If you wish to work with a real estate agent, pick someone familiar with international transactions.
Mortgage Pre-Approval
After finding a property in the right location, it’s time to apply for a mortgage with the selected lender. Once the lender approves your application, a pre-approval letter showing how much you qualify to borrow will be sent to you. You can use the details in that letter to submit your first bid.
Mortgage Application
Once the property owner accepts your bid, you can go ahead and apply for a mortgage. However, ensure you understand all the lender’s requirements before applying. Attach essential financial documents like bank statements and proof of income to increase your chances of securing the mortgage.
Inspect the Property
You can hire a professional property inspector to assess whether the house needs repairs before moving in.
Transfer the Funds and Close the Deal
After making a downpayment and signing the necessary documents, the legal expert involved in the deal will send your details and the property owner’s details to a title deed office to make the ownership transfer official. The title deed office will then notify your lender when the transfer is complete so that funds can be transferred to the seller.
Title Insurance
Conduct thorough research to find out whether the title is connected to any unresolved dispute. If you find none, take title insurance to protect your investment.
And that’s it, you are a Canadian with a house in Arizona. Congratulations!