Many people are expanding their businesses to other countries, not just the country they reside in. With entrepreneurs looking into bigger networking markets all the time, they are building their business, not the product, so sometimes have more success in another country. The prime question many would wish to know is can anyone buy a home in another country, even if they do not have the funds to do so outright?
Although in some countries it is viable to get a mortgage abroad, there are many things you will need to find out before setting your heart on the country that you love. It is not possible in every country for a foreigner to own a home outright, even if you do not need to borrow from the bank. There will also be requirements and stipulations in some countries that will deem you a suitable person, in order to own a property, even if the home will be a second property.
What Needs to be Done When Applying for a Mortgage Abroad?
If you are seriously thinking about purchasing a home abroad, you should find an overseas mortgage broker to help you in your quest. A mortgage broker that mainly or only deals will other seas properties, will not only be able to advise you but they will have a list of criteria that you will need to fit into before obtaining a mortgage.
In some countries, you may only purchase a home if you have residency. There may be rules that you need to gain a permanent residency card or legal paperwork before you even think of approaching a bank for a mortgage. Other countries will require you to prove you have financial resources. You may also need to have a husband or wife that already has residency, which will sometimes only allow you to have the property in your husband or wife’s name.
Is it Possible to Obtain a Mortgage Overseas Without a Broker?
This could be a route that you go down, however, it is not advisable. Purchasing a home in another country will require many legal documents in another language, so unless you speak, read and write fluently this will lead to more complications than hiring a third party to take care of the whole application from beginning to end. Dealing with overseas mortgages is not a simple process, and you may struggle to do so alone.
Legal processes need to be followed in obtaining a mortgage wherever you are living, these need to be followed and adhered to in all countries to make the mortgage legal. If you do not follow the correct procedures legally this can lead to property confiscation or fraud charges like money laundering. It is best to get a professional overseas mortgage broker to stay within the legal boundaries and requirements needed.
Which Country do the Funds Need to be Obtained From?
The country where you are applying for the mortgage will all depend on whether you work in the country you require to purchase. For instance, if the home will be a second home used as a holiday dwelling or an investment for your retirement, you will more than likely need to apply for a mortgage in your country of residence. This also comes back to which country you wish to have the mortgage in.
Some countries’ banks may consider helping with a mortgage if you have other property that can cover the cost of any defaults in the new mortgage. Many people who obtain homes in other countries will do so outright, however, this is not always considered the sensible thing to do. Especially in situations where arguments over boundaries are concerned, it has also been known for developers to sell the same property to more than one buyer.
Is it Better for Legal Reasons to Have a Broker?
In short, yes. By employing a broker they will not only deal with the mortgage throughout the whole process, but they will also deal with any problems that arise after the purchase if it was in the contract to do so. The responsibility will sit with them, for example, if the property you have the mortgage for has been sold twice then you will have legally binding contracts, that not only show you are on a mortgage and paying it but the documents you have are not false.
It is an overseas mortgage broker’s job to make sure everything you are financially responsible for and the purchase you are making is legally binding. That you will be protected from all angles in regards to the bank, that your repayments are fair and not extortionate.
Summary
The best way to discover if you are eligible for a mortgage overseas is to contact a reliable mortgage broker that deals with mortgages overseas as their specialist topic of work. Research a mortgage broker from the country you are in, finding out whether they have had dealings with the country you are required to purchase in.
By using a mortgage broker you are also moving the legal responsibilities to them to a certain degree as it will be in the contract to translate, negotiate and understand all that is required and let you as the client know. Take less time and save your time and energy in finding your new home.
