Foreign Investors – 2 Important Things You Need to Purchase a Home in the United States

Are you a foreign investor attracted to the declining real estate market in the United States? Like you, I’ve worked with many foreign investors that had a desire to Real Estate Broker Near Me purchase a home in the U.S. While investing in a home in the States may be exciting, you must be prepared to fulfill two requirements to have a smooth transaction.
1. Individual Taxpayer Identification Number or Social Security Number
You will need to obtain an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN). An Individual Taxpayer Identification Number is a tax processing number only available for certain non-resident and resident aliens, their spouses, and dependents that are not eligible to obtain a Social Security Number. An Individual Taxpayer Identification Number is a 9-digit number formatted like a Social Security Number and can be obtained at .
A Social Security Number can be obtained at if you have U.S. Citizenship or lawful alien status. Whatever number you are eligible for, they will both assist you with your purchase to open a U.S. bank account and will be requested if you are seeking financing for your purchase.
2. U.S. Bank Account
A local U.S. bank account should be established for a few reasons. As a foreign buyer, many Sellers would like to see funds for your purchase available in the U.S. to make them feel more comfortable about accepting your offer. This is especially true when you are making a cash purchase. Showing proof of funds from a U.S. bank account will make your offer more attractive.
Likewise, if you are seeking mortgage financing, a U.S. lender will want a local U.S. bank account established. They usually request the total Mashvisor Property Finder down payment plus closing costs and 6 months reserves (mortgage payments and expenses) to be deposited into your U.S. bank account.
While every real estate transaction has challenges, you can avoid two bumps in the road by being appropriately prepared to purchase a home as a foreign investor. To help your home search and purchase go smoother, be sure to obtain an Individual Taxpayer Identification Number or a Social Security Number, and open a local U.S. bank account before looking at homes. I also advise you to consult with a local Real Estate Agent to ensure you are getting the proper guidance, representation, and market knowledge during your transaction. In most cases, the Seller will pay the commission to your Buyer’s Agent for you.

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