Most people buy a home by obtaining a mortgage. You do not have to accumulate enough cash to pay for the full price of the house up-front. Many financial institutions will agree to give you a mortgage, depending upon your ability and willingness to repay the debt. A mortgage is the amount of money you borrow from the bank or other financial institution, with interest, to purchase your house. The amount of your initial mortgage is usually the purchase price of the home minus your down payment.
Homeownership can be a worthwhile investment even if you plan to live in the U.S. temporarily. Oftentimes, you can build up enough equity—or savings—in your home in a few years that it is worth the investment you make today. Equity is value in your home above the total amount of the outstanding mortgages against your home. If you owe $100,000 on the mortgage on your house but it is worth $130,000, you have $30,000 worth of equity. Of course, if the value of your house goes down, you may not build as much equity.
It’s easy to establish credit so you can get a mortgage. One way is to establish a relationship with a bank, credit union, or some other financial institution to demonstrate your willingness and capacity to repay a debt. You can also obtain a mortgage even if you have non-traditional credit, such as documentation of your history of paying rent, utilities, and telephone bills.
