If one of your resolutions for this year is to buy your own home in Costa Rica, the first thing you should focus on, before taking that decision is to know your financial status and also if you are really ready to make that new commitment. This will allow you not only to make a responsible decision, but also to take care of your finances and have the necessary peace of mind to meet that financial obligation.
Here are some basic recommendations:
Assessing your current financial status: look for options that fit your actual budget, and know your capabilities as a consumer, are the keys before making the decision to buy your own home, suggest experts in the field.
Interest rates in colones or dollars: different terms for loans and a variety of financing figures are some of the main points to consider before making this decision. Review your income and expenses and pay attention to what you pay for rent today, current debts and how much savings you have, in case you must pay a home premium. If you are considering a loan for the purchase of a house, it is recommend that it be in the currency in which you receive your income (dollars or colones).
Estimating the loan payment: that your pocket will allow you to pay and take into account the amount that would be saved in the rent, so you will have security of your ability to pay to opt for a mortgage loan. Look at the difference in your home premium, or if you sold your old home and want to use it as an advance.
Calculate the value of the house or apartment: of your choice and of your dreams. Decide if you want it new or used. This value will be in accordance with what you can opt for a mortgage loan. So you can pay your fees with peace of mind.
Discuss interest rate options and the term: for which you want to get your home loan, remember that the longer the term and the lower the annual interest rate, the lower your payment. This will allow you to see which is the best option according to your financial reality.
Include in your monthly budget the loan fee and additional expenses that you must cover, such as annual taxes to the Municipality, a percentage of preventive maintenance and if it is in a condominium, the monthly contribution. Review the interest rate annually in case there is any variation in the installment.
Requirements and conditions
When you approach your financial institution, also consult the requirements and conditions existing around the mortgage credit, such as:
Term: It is the duration in months that you will pay for the credit, the longer it is, the lower the amount you will have to pay monthly.
Fee: It is the monthly payment that you will have to pay to the entity. The realization of a budget will allow you to know the amount of the fee that you can assume.
Interest rate: It is the amount that will be paid to the financial institution for the loan of the money. Analyze the one that best suits your financial reality. Remember that this type of credit can have associated costs such as appraisal and administrative expenses. Asked for also for them.
Insurance: This financing generally has several associated insurances and it is important that you know what they are.
Currency: Choose the currency in which you receive your income, colones or dollars, this way you will avoid assuming an additional risk to your credit, which is related to the behavior of the dollar exchange rate.