Buying a Home in the U.S.
Published Tuesday August 27th 2024
A conversation between Hussain Ali Haidari and Faranak Toma, a licensed realtor in MN.
What is your background?
I was born and grew up in Iran, having a few citizenships and lived in different places. I got my master’s in economics and worked in massive industrial companies including oil and gas as a project controller and estimator. When I moved to Minnesota in 2016, I decided to have my own business and started it as a realtor. I love people, houses and sales! For seven years, I shared my commission with my clients and that helped me to close twice as many deals as any other realtor as well as having twice the experience. I truly believe I’m in the right business. My educational background and job experience help me to educate my clients on how to invest. I feel every client is my family member and I patiently care about them. My clients always recognize that I work with my heart. I think homes are so much more than just buildings. Home is where the heart is! I have been recognized as a top-performing agent at Bridge Realty among over 850 realtors. Almost all my clients are referred to me by past clients
Why is it important to buy a house in the US?
I think property prices have increased in the long-term all over the world throughout history even when considering short-term reductions like in 2008. If you look at the big picture of housing prices, you want to do a long-term investment. I always tell people by renting; you pay other people’s mortgage instead of paying your own mortgage. So, you add to the equity of your house by not wasting the rent somewhere else and you make a long-term investment.
Additionally, owning a home helps show stability for immigration/asylum cases and can be very helpful with immigration/asylum cases when requesting for family from abroad to migrate to the US
What is the average rate on the standard 30-year fixed mortgage?
Today, the average rate is 7%. I hesitate to answer questions about mortgage since it is not my area of expertise and a mortgage officer will be your person to get more details. Remember when you want to buy a house, you will work with a realtor and a loan officer at the same time.
A loan officer is a representative of a bank, credit union, or other financial institution who assists borrowers in the application process, reviewing their financial situation and helping them get approved for loans that they qualify for or giving them advice on what they need to work on financially before they can qualify for a loan.
A realtor is a licensed real estate professional who assist people in buying or selling property. Realtors are bound by a code of ethics to provide accurate information of the market value of a property and other financial details to their clients and make money by taking a percentage of what a property sells for, which is referred to as commission.
What is the requirement for buying a house?
You need some residential paperwork that shows you are living in the United States legally. Two years of work experience and a filed tax return, proof of good credit (a good credit score is generally agreed to be 680 or higher), a good income to debt ratio (meaning you earn more in income than you owe in any form of debt monthly) and having a job for the last 6 months in a row. I will connect you with a mortgage officer to make sure you are eligible before starting the process.
According to the Consumer Finance Protection Bureau, a credit score is defined as:
“a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports. Companies use credit scores to make decisions on whether to offer you a mortgage, credit card, auto loan, and other credit products, as well as for tenant screening and insurance. They are also used to determine the interest rate and credit limit you receive.”
What is important to consider when buying a house?
First you need to decide which city or area you want to buy. Then decide if you want to buy a new construction or an existing home. Also, you need to think about buying a single home family, a townhouse or a condo. Each has pros & cons. It depends on what your priorities are?! A good realtor takes you to all these different properties and educates you. Then you will know which way you have to go. When you buy a house, always consider your feelings about the neighborhood and about the house. Those true feelings give you the answer.
Other things to look for:
Schools, shops, distance to work/community, public transportation, recreational spaces for kids (parks, rec centers, libraries), accessibility for elderly or disabled family members, crime in neighborhood, and overall condition of the neighborhood.