The US real estate market is considered as an attractive location for foreign investors, as it promises a most stable place to invest capital. If you are also a foreign investor looking for some property to own in the US, you need to know a few important things. While investing money in purchasing a home in the States, you need to prepare yourself to fulfill certain requirements for a safe and smooth real estate transaction. Read on to find out what these requirements are.
Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN)
In order to own a home in the US, you are required to obtain either an individual tax payer identification number or a social security number. An ITIN will be issued to you from Internal Revenue Service (IRS) and this number will serve as your valid tax identification. IRS, an organization responsible to collect taxes, issues an ITIN as a tax processing number to certain resident and non-resident aliens living in the US.
You don’t need to obtain an ITIN if you are eligible for a social security number (SSN). A social security number is another form of tax identification issued to US citizens. You may also be eligible for a SSN if you possess a US citizenship or legal alien status. Both these numbers assist individuals in filing their federal income tax returns in compliance with US tax laws.
You must apply for either of the two numbers that you are eligible for; because these numbers will help you open up a US bank account for making a real estate purchase and seeking finance for the payments.
US Bank Account
It is also important for you to have a local bank account within the US territory. As a foreigner customer, many local sellers will want to see the capital for your purchase, available in the US, so that they can feel more comfortable and secure while doing business with you. Your offer becomes more appealing to local sellers when you show them funds from a local bank account.
In addition, a US bank account will also assist you in obtaining mortgage financing. US money lenders usually require you to deposit down payment and six month reserves, including mortgage payment and other expenses, in your local bank account.
There are always certain risks and challenges associated with real estate transactions; however, you can avoid major problems by appropriately preparing yourself for buying a home in the US as a foreigner. In order to make your property search and buying process smoother, make sure you have obtained an ITIN or a SSN and establish a US bank account.
After fulfilling these requirements, you must consult a real estate agent who will give you proper assistance, representation, and market information during your purchase. Hopefully, the above information will help you in the process, so go ahead and own a home in the United States, in spite of being a foreigner.
If you want to apply for an, Individual Taxpayer Identification Number, or ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.