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Imagine you’re new to the United States and anxious to buy your first home or commercial property. The dizzying array of options, of financing concerns, and the newness of culture and language make the task of this purchase – difficult for many citizens – even more frustrating.
Now imagine you find a REALTOR® who knows exactly how to guide you through the system to make your dream come true, and how much easier and more pleasant that process will be.
Now imagine you’re the REALTOR® with this knowledge, and all the referrals you’ll get from the international community when they find out that you’re the person who can help them achieve their own American dream.
Knowing culture and the way in which citizenship status changes the home-buying process is knowledge that brings you clients. So what do you need to know?
- How does citizenship impact credit for financing a home?
- What lenders will lend to non-citizens?
- When do most new Americans buy their first home?
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Cultural Awareness
All around the world, culture changes the ways in which every day routines are lived, conversations are held, and business deals are made. Knowing these differences, and working with them, can make a huge difference in the future success of any transaction you do.
Some of the main differences in cultures include attitudes and actions toward the following types of decisions and tasks:
- communication styles
- attitudes towards conflict
- decision-making styles
- attitudes towards disclosure
- approaches to knowing
For more information on general cultural difference and multi-cultural communication, visit:
Knowing about different cultures is important when working with clients from abroad. But it’s also important to be aware of the stereotypes that many abroad hold of Americans, as evidenced by clicking the following link: http://www.edupass.org/culture/
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Frequently Asked Questions
How does citizenship impact financing for a home loan?
Citizens and legal immigrants are issued Social Security numbers, which are used by lenders to check for credit scores. New Americans, while they possess Social Security numbers, often don’t have an established credit history in this country upon which lenders can depend. Often loans are not approved, even when the potential homebuyer does have established credit in their home country.
Given the number of potential homebuyers in the United States who were not born here, many banks have turned to a new means of lending – using a taxpayer ID number – to issue loans. This number ensures that the person applying for the loan is working legally in the country.
What lenders will lend to non-citizens?
In Michigan, 5/3rd Bank and TFC Financial Corp., with branches in most Michigan cities, provide taxpayer ID loans to new homebuyers. Many of these loans are being backed by the nation’s largest mortgage insurance provider, Mortgage Guaranty Insurance Corp. Many other lenders and mortgage insurance companies are also joining the ranks of lenders willing to loan to new Americans, so check with your local lenders to find out what they can do! Most lenders happily report that they have not experienced differences in the rates of foreclosure or nonpayment on these types of loans when compared with credit-score loans.
When do new Americans usually buy their first home?
Most new Americans buy their first home ten years after coming to the United States.
What cultural issues impact financing a new home?
Many new Americans come from cultures where families join together in extended family units to buy homes, rather than the traditional American model of the nuclear family home. Many new Americans also come from backgrounds that do not believe in using credit to make purchases, and so often substantial down payments – or full payments – will be used to purchase a home after years of saving.
CIPS Resources
The CIPS, or Certified International Specialist, designation is a NAR program designed to teach REALTORS® how to better interact with people from other cultures and to profit from the use of their multicultural communication skills.
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