Mortgage Loans in Panama
January 31, 2010 by ursula
Filed under Banks and Mortgages
Who qualifies for a loan in Panama?
Both Panamanian and foreign residents and non residents can apply for a mortgage in Panama. The banks in Panama have created mortgage products designed specifically for both segments.
How do I qualify for a loan in Panama?
To apply for a loan in Panama is necessary to have good credit references, have a stable income, both as an employee or as an independent and have sufficient capacity to repay debt.
At the time of applying for the credit is very helpful to have an existing relationship with the bank. It is your responsibility to provide timely documentation required by the financial institution, as it could otherwise delay the application period.
We recommend having a recent appraisal, not more than 6 months and satisfy the insurance requirements such as a life insurance and a fire insurance policy. One can apply individually or jointly (requires separate life insurance policies). The term of repayment will be linked to greater age. The age ceiling for the repayment of a mortgage loan in Panama is 75 years old.
What goes on a disbursement of a loan?
After your loan is approved and you have met the requirements for disbursement of the same, the bank and the developer must register the deed in the Public Registry of Panama to transfer the property title to the buyer. Having obtained the property title the disbursement will be done. This process usually takes between 3 and 8 weeks.
Time frame and steps to obtain a mortgage loan in Panama
1. Having a selected property (our licensed real estate agents can assist you in your search for your perfect property)
2. Consult with one of our mortgage brokers for a pre-approval of credit, which our consultant will assess your value, which you will obtain within 72 hours.
3. Ingress the documents to the selected bank for credit approval. This usually takes between 1 to 4 weeks.
4. Once approved your credit, you must make the corresponding payment amounts to the part that the bank does not finance established in the contract of sale.
5. Obtain a life insurance policy for the amount to be financed and a fire insurance policy for the full value of the property. Our insurance brokers will assist you in obtaining the policies. The life policy can take up to a month to obtain.
6. Open a bank account, which will be used to make the monthly loan payment.
7. Cover with closing costs of the loan as payment for legal costs, notary, among others.
For more useful information about moving to Panama contact one of our experts today.
