How To Get A Loan From An American Bank?

The financial institutions in the USA are similar in structure and composition to banks in other countries. The only significant difference is the presence of a common credit structure that combines both private and state banks together with a reserve system that provides stability. The credit market includes the banking and commercial segments, each of which has its own composition of participants, the amount of funds, interest rates, and loan terms like this app.

The main advantage of the system is a simplified version of lending. The minimum set of documents, process control, transparency of credit histories, and short terms for reviewing an application and processing a loan allow you to contact the bank even to buy products on credit.

Student loan

Investing in education is the best investment that in the future can bring dividends in the form of a good job and provide income and position in society.

The banking segment provides the following types of educational loans:

Parental. The loan term is 10 years with the possibility of deferral for 2 months, the amount of payments is from $50/month.
Federal. The loan is issued by a bank (interest up to 5 points and without payment for the issuance, if the financial situation is low) or an educational institution.
Consolidated. Combines several options for educational loans.

Mortgage

Large institutions are ready to issue a loan and finance up to 75% of the cost of the object. However, practice shows that in American banks, foreigners can often count on loans only half the value of the real estate.

In order to receive a mortgage loan, a bank client must:

Contact the branch for pre-approval. Consultants will consider the financial solvency of the borrower and the possibility of issuing the required amount, and interest on the loan.
Pass the credit check stage, when the bank examines the person’s credit history and clarifies other information about the borrower.
Prepare the necessary list: identity document, income level, permanent place of work.
Sign the documents of purchase and sale of real estate, which means the transfer of ownership. The borrower receives a mortgage agreement and the keys to the apartment.
Credit institutions seek to minimize risks, therefore, they collect information regarding the financial reliability of the client.

The list of documents for a mortgage that must be submitted to the bank includes:

Photocopy of passport, American visa.
The exact address of the property. If owned, then an invoice for payment of property tax, and payment of insurance. If rental housing, you should attach a copy of the agreement, and a letter from the owner of the property.
Workplace data: company name, phone numbers, email.
Account statement for the last two months.

The policy of the USA is focused on the support of its people. This is done by the mortgage interest rate. Locals can take a mortgage loan from an American bank at a rate of 3.5-7% per year, banks offer a loan to a foreign citizen at 5-9%. The amount of the contract, as a rule, does not exceed $150,000 and is issued for a period of 15–30 years.