I first thought I wanted to purchase a home in Japan, as an American expat who's lived here for about 7 years. When looking at the interest rates compared to the US, it seems like a no brainer. But the process is not as straightforward as it seems…

A List of Things Required

Visa and Residence Status: As a foreigner, you must have a valid visa that allows you to live and work in Japan. Permanent residents (PR) have the same rights as Japanese citizens when it comes to property ownership, while non-permanent residents may face certain restrictions depending on their visa type.

1. Visa and Residence Status: As a foreigner, you must have a valid visa that allows you to live and work in Japan. Permanent residents (PR) have the same rights as Japanese citizens when it comes to property ownership, while non-permanent residents may face certain restrictions depending on their visa type.
   
   

2. Proof of Income and Employment: Lenders will require proof of your income and employment to assess your ability to repay the mortgage. This may include income statements, tax returns, and employment contracts. Specifically for tax returns, make sure the year that you plan to purchase a house, you make you taxable income
   
   

3. Savings and Assets: Having a significant amount of savings or assets will strengthen your application and demonstrate your financial stability. Lenders typically ask for a down payment of 10-20% of the property value. 20% is realistic, and 10% is optimistic.
   
   

4. Credit History: Your credit history in Japan or your home country will be evaluated to determine your creditworthiness. A good credit history will make you a more attractive borrower and may lead to better loan terms.
   
   

5. Guarantor (Optional): If you have a limited credit history or income, a guarantor can be helpful. A guarantor is a Japanese citizen or permanent resident who agrees to assume responsibility for your loan payments if you are unable to do so.
   
   

6. Understanding of Japanese Real Estate Market: Familiarize yourself with the Japanese real estate market, including property values, tax implications, and the buying process. Consider hiring a real estate agent or property consultant to guide you through the process.
   
   

7. Communication and Language Skills: Basic Japanese language skills will be beneficial for interacting with banks when doing loan interviews, real estate agents, lenders, and other parties involved in the buying process.
   
   

8. Patience and Flexibility: Buying a house can be a time-consuming process, so be patient and flexible. Be prepared to provide documentation, attend meetings, and navigate various administrative procedures.
   
   

9. Professional Help: I spoke to a few real estate specialist in the inquiry phase of buying. I recommend Erik Nas's eHousing if you're an English speaker. They're wildly innovated and professional, and will get the job done smoothly for you.

Phrases Helpful for the Loan Interview

General phrases

• コンニチワ (Konnichiwa) - Good day

• ありがとうございます (Arigatou gozaimasu) - Thank you

• わかりました (Wakarimashita) - I understand

• すみませんが (Sumimasen ga) - Excuse me

• お願いします (Onegaishimasu) - Please

• はい (Hai) - Yes

• いいえ (Iie) - No

Apartment phrases

• 部屋を探しています (Heya o sagashite imasu) - I am looking for an apartment

• 予算はいくらですか (Yosan wa ikura desu ka?) - What is your budget?

• どのエリアがいいですか (Dono erea ga ii desu ka?) - Which area is good?

• どんな部屋を探していますか (Donna heya o sagashite imasu ka?) - What kind of apartment are you looking for?

• いつから入居できますか (Itsu kara nyūkyo dekimasu ka?) - When can I move in?

Loan phrases

• 住宅ローンを組みたいと思っています (Jūtaku rōn o kumi tai to omotte imasu) - I would like to take out a housing loan

• いくら借りることができますか (Ikura kariru koto ga dekimasu ka?) - How much can I borrow?

• 金利はどれくらいですか (Kinri wa dore kurai desu ka?) - What is the interest rate?

• 返済期間はどれくらいですか (Kaifuku kikan wa dore kurai desu ka?) - How long is the repayment period?

• 審査には何がが必要ですか (Shinsa ni wa nani ga hitsuyō desu ka?) - What is required for the review?

Buying phrases

• この部屋を買いたいと思っています (Kono heya o kaitai to omotte imasu) - I would like to buy this apartment

• 契約の手続きはどうすればいいですか (Keiyaku no tetsuzuki wa dō sureba ii desu ka?) - How do I proceed with the contract?

• ローンの申し込みはどうすればいいですか (Rōn no mōshikomi wa dō sureba ii desu ka?) - How do I apply for a loan?

• いつ入居できますか (Itsu nyūkyo dekimasu ka?) - When can I move in?

• 引っ越しに必要な手続きはありますか (Hikkoshichi ni hitsuyō na tetsuzuki wa arimasu ka?) - Are there any procedures required for moving?