If one of your resolutions for this year is to buy your own home in Costa Rica, the first thing you need to focus on, before making this decision, is to know your financial situation and also if you are really ready to make this new commitment. This will not only allow you to make a responsible decision, but also to take care of your finances and have the peace of mind to meet this financial obligation.
Here are some basic recommendations:
Assessment of your current financial situation: researching options that match your actual budget and knowing your capabilities as a consumer are key before making the decision to buy your own home, suggest experts in the field.
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Interest rate in colones or dollars: different conditions for loans and a variety of funding figures are some of the main points to consider before making this decision. Review your income and expenses and be careful about what you’re paying for rent today, your current debts, and your savings, in case you need to pay a housing premium. If you are considering a loan for the purchase of a home, it is recommended that it be in the currency in which you receive your income (dollars or colones).
Estimated loan repayment: that your poached will allow you to pay and take into account the amount that would be saved in the rent, so you will have the security of your ability to pay to opt for a mortgage. Look at the difference in your home premium, or if you’ve sold your old home and want to use it as a cash advance.
Calculate the value of the house or apartment: of your choice and your dreams. Decide if you want it new or used. This value will be consistent with what you can opt for for a mortgage. You can therefore pay your costs with complete peace of mind.
Discuss interest rate options and duration: for which you want to get your mortgage, remember that the longer the term and the lower the annual interest rate, the lower your payment. This will allow you to see which option is the best depending on your financial reality.
Include in your monthly budget the borrowing costs and additional expenses that you must cover, such as the annual taxes to the Municipality, a percentage of preventive maintenance and if it is a condominium, the monthly contribution. Review the interest rate each year in case there is a variation in the payment.
Requirements and conditions
When talking to your financial institution, also consult the requirements and conditions that exist around mortgage credit, such as:
Term: It is the duration in months that you will pay for the credit, the longer it is, the less the amount you will have to pay monthly will be high.
Costs: This 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 fees that you can assume.
Interest rate: This is the amount that will be paid to the financial institution for the loan of the money. Analyze which one best suits your financial reality. Keep in mind that this type of credit can have associated costs such as appraisal and administration fees. Also requested for them.
Assurance: This funding is generally associated with several insurance and it is important that you know what they are.
Cash: Choose the currency in which you receive your income, colones or dollars, thus you will avoid assuming an additional risk on your credit, linked to the behavior of the dollar exchange rate.