Why Costa Rica Real Estate?
Financing
Documentation
In order to properly secure a mortgage, you will need to present:
- Mortgage application filled out and signed.
- Two copies of the registered survey plans.
- Documentation for proof of ownership for vehicles and notable assets.
- Two photo IDs (usually a passport and a driver's license)
- A bank issued statement with current investment, savings and retirement accounts for the preceding six months.
- A copy of your tax returns for the last two to three years.
- Proof of your last U.S. address.
- Social security #
- Copy of purchase option agreement and down-payment receipt from seller.
- Documentation from the municipal authorities showing that all taxes on the property have been paid.
- If applicable, Costa Rican utility bills.
- Copies of your last six months worth of credit card statements. All credit accounts should be noted to the bank for they will perform a credit check in your home country.
- If you have had a mortgage or loan, verification of your last payment.
- Income certification provided by a CPA showing monthly gross income.
With this documentation in hand, the mortgage application process will be successful. There are some other circumstances that require additional information. If you wish to refinance a current Costa Rican real estate purchase you need the last letter or receipt from your previous creditor. If you property is in the name of your corporation, then the bank will ask for additional documentation as well.
For real estate owners that are planning to build on the land or perform an addition, you must present the building schedule, summary of the construction fees and proof of approval from the Colegio de Ingerieros y Arquitectos and the local municipal authority.
In the eyes of the bank, income verification is the most important thing in determining the terms of the loan. There are three classifications that the Costa Rican banks use for source of income: self-employed borrower, buyer on salary and foreign income borrower.
For a self-employed borrower, the first thing you must give the bank is an authentic copy of your income by a certified CPA that is authorized to practice in Costa Rica. They must verify your current job position, your company's business type and an average net income for the last fiscal period.
For a buyer on salary in a company within Costa Rica required income verification. A letter from your employer summarizing your employment must be addressed specifically to the bank.
For a borrower with foreign income, the bank will use the same procedure as for the self-employed.