Top 8 tips while buying a Home on H1B
We Suggest You Should buy a Home while on H1B only if
- You have your I140 approved and waiting for your Priority dates to become current.
- You and your spouse are both on H1B and waiting to file for I140
- You are Single and on H1B Full time Job waiting to file for I140
If you are Married and your spouse is on H4 and you have not yet filed for I140 we strongly suggest not to buy a Home as the risks are too high if you lose the job while on H1B.
- Know you Price Budget
Before you even think of Buying a Home know what is the Budget you can comfortably pay . Know what is the property tax in your area, Insurance premiums, Utility average, Water and Garbage average and make a total of this expense per month, and review the same if you can afford it.
- Know How much Bank Balance – Liquid Cash you have.
If you don’t have at least 20% cash for down payment for mortgage we strictly recommend do not buy a home on H1B. Banks do offer loans with No down payment or very less down payment. But to get less insurance premiums and also less interest rates 20% is a rule of thumb. Also Interest rates are low these days never put in more than 20% down payment. If you have extra cash invest in stocks or fixed deposit in India which will fetch you 9% return per year while you are working on H1B
- Work with a Home Broker
Never buy a Home which says Sale by Owner, Always use a real estate agent while buying a Home, its free in USA. The seller pays commission to home brokers.
Home Brokers know all contacts and have more knowledge of the locality,prices,and also if any issues with the home. They will also help you with documentation and loans, inspections and various other concerns if you have. But ensure you find a licensed Home broker who can cater to your needs, If you don’t like an agent ensure you stop home hunting and change the Agent. Never buy in a rush , All agents will want to make a sale and may push you to buy a home quickly.
- Do your Research
You are on H1B and you are Tech savvy, Do your own research on the Home , the Neighborhood, nearest School, Nearest Groceries ,Nearest Temple, Drive down the neighborhood, Try to talk to your friends or people in that community and ask them if they have any concerns. Check the traffic in that neighborhood. Lastly Google and find out what other say of that neighborhood and the price range of houses nearby which was sold .
- Check you Credit History
Buying a home may be one of the largest financial decisions you ever make. Be prepared. Get a copy of your current credit report, identify any discrepancies, and get them fixed before you talk to a lender.
- Hold off on large credit purchases
Stop making large purchases on Credit cards or taking car loans while you have plans for buying a home.
If you have your credit score of 720 and above you will get lower interest rates, If you have Credit score of 640 and below we recommend ,wait for few months to increase your credit score before buying a home.
When you shop for mortgage ensure you get quotes from at least 3-4 lenders and pick the best lender who offers discounts and lesser interest rates.
- Do not touch the down payment and closing cost for 3 months
Make sure your down payment and closing-cost Cash is in your account at least for 3 months prior to closing a deal on the Home, as banks may review you account statement to ensure you have good quarterly balance in your account before issuing a loan.
- Time the Housing Market
Houses go for Sale when Children’s get Summer breaks, Hence the supply will be more than the buyers and the best take to make a deal. Hence time the market before you rush into buying a Home. Being on H1B you have to be very careful , if you are fired from your Job you cannot stay at Home either you have to find a new job or pack your bags to INDIA.