If you have plans to buy a house this year in Costa Rica, please take the following notes into account. Here are some financial recommendations with share with you:
• Make a record of 100% of your expenses and commitments to evaluate what is a real amount that you can pay in one installment over a period of up to 30 years.
• Add a savings item to your budget to cover not only the premium when applying for the loan, but also additional costs such as appraisals, insurance, among others; When you receive the home, budget for other commitments like paying taxes, security, or maintenance fees.
• Choose the currency in which you receive the majority of your income, to limit exchange rate risk; in the event that considerable changes occur in the exchange rate over those 30 years and thus your budget is not affected.
• Think of a strategic location that will generate future profitability and that suits your priorities (for example, if you have children consider the proximity of the school or a park, as well as access to public transport, etc.).
• Analyze the location to keep in mind the investment time in transportation and associated costs (distance, fuel, buses, among others).
• Take into account everyone’s comfort, check the number of rooms, bathrooms, and the size of the garage.
• Think ahead, it is better to invest in a property that meets the conditions of the family nucleus (thinking about whether you will have children or in retirement).
• Look for the best option for financing, know the interest rates, terms, conditions and the stability of the financial institution in which you are going to trust.
What should you know when applying for a home loan?
To apply for a home loan, 2 elements are analyzed:
1. The financial viability of the debtor and co-debtor (if they have one).
2. The viability of the property to be taken as collateral.
The studies or analyzes carried out on the debtor are related to:
• The risk rating or current and historical payment behavior of the debts.
• The ability to pay or the indebtedness ratio that the person currently maintains.
The basic requirements to carry out the financial viability analysis of the debtor are:
- Identification valid and in good condition
- Proof of salary or income certification
- Most recent payment stubs
- Security employer
- Fill out internal forms, as required