Buying a house in America: no notary, but an escrow — and three days to read everything

First the order that's fixed on this site: in your first year you don't buy — you rent, you get to know your state and city, and only then do you decide. This article is for the moment you've got that far. And then you have to forget one thing: everything you know about notaries.

No notary — a settlement agent

The American purchase revolves around the closing, organised by a settlement agent: usually a title company or escrow company, in some states a closing attorney. That party collects the money from buyer and bank, has the seller sign the deed, pays everyone out according to the purchase contract and records the documents with the county. The title company investigates the ownership history of the house beforehand; the customary title insurance covers what that search misses. It sounds like the notary cut into pieces — and that's what it actually is, with the difference that none of those parties is your adviser. Whoever wants to be sure brings their own real-estate attorney; in a number of states that's the norm anyway.

One right you have to know and use: the Closing Disclosure — the full overview of your loan and all costs — must by law be with you at least three business days before the closing. If you get it later, the closing should move. Those three days are for reading and comparing with the earlier Loan Estimate; sign nothing where you don't understand an item.

The costs: different per state, so have them worked out

America has no national transfer tax; what you pay in closing costs — loan costs, title search and insurance, recording, and in some states and counties a transfer tax — differs per state and adds up to a few percent of the purchase price. The good news: that's exactly what the Closing Disclosure is for, so you know it in black and white before you sign. And check your visa status and tax liability: buying as a foreigner is allowed almost everywhere, but the tax consequences differ from those of an American.

And after that: property taxes in your monthly payment

The annual property tax goes to the county and local authorities and differs hugely per place — from less than half a percent to well over two percent of the assessed value. The American system does make paying it easy: with a mortgage the tax (and your home insurance) usually runs in your monthly payment via an escrow account — the bank saves it up for you and pays the assessment. With a concrete house always ask for the current property tax; next to the mortgage it's the biggest housing cost, and it's reassessed along with the market. How the first months go from there, you read in your first weeks in America.

In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to America.