Real estate agents are obviously not mortgage brokers, but that said, one fact will surely make them wear more than one hat: nearly 30 percent of Chinese nationals, who are buying homes in America, finance their purchase instead of paying all cash.
In most cases, a real estate agent is the first professional help a Chinese buyer hires to get himself acquainted with the home buying process in America. Naturally, as a first time home buyer in a country completely new to him, he would have lots of questions and curiosities. It is also obvious that he would put queries related to financing the purchase at the top of the list. The real estate agents should be able to answer some of these questions or refer him to professionals who could.
Such kind of assistance can help real estate agents nurture the leads which they get in form of questions by email or phone from their overseas clients. Most Chinese clients would ask simple questions by email, for example “How can I avail of a mortgage from an American bank”.
There are several reasons why a Chinese buyer may prefer to finance their home purchase instead of paying all cash even if he has access to enough credit. Three of the most obvious reasons are as follow:
Though an overseas buyer has to pay a higher interest rate and higher down payment, a Chinese buyer will still consider taking on a mortgage from an American bank as interest rates are lower compared to those in China, especially if they are buying their second property back home.
Many Chinese buyers prefer America over several other countries because of the depreciating value of US dollar against yuan. Financing a purchase through a mortgage in America instead of paying all cash becomes a more viable option for them in such a situation.
Though most banks requires at least 3-5 years of credit history to provide a mortgage , some financial institutions, especially those which have branches in China also, are offering loans to Chinese buyers without any credit score. These banks take into account the applicant’s credit history in his home country. So after availing a mortgage here, a Chinese buyer may be able to create a credit history in America also.
Though as a real estate agent, you can’t provide professional financial consultancy, you can still learn the basics and help your clients get access to financial institutions or mortgage brokers who would assist them with their mortgage requirements.
Here are some facts you should know: