The first step in the buying process is setting a budget. In general, this depends on what has been saved (or plans to save) and what will be taken out in financing. This process can take a long time and can take many requirements and stages. Here we explain everything you need to know to obtain a loan in Costa Rica.

Types of Loans

There is no standard classification for loan types, but they can be divided into two general categories: loans based on maturity and loans based on destination or purpose. Those that are for the maturity term are based on the time that the loan will be established to pay, that is, if it is short, medium or long term. This classification is incorporated into the following which is according to the destination or purpose. These loans are as follows:

Personal Loans: they are used to finance specific needs of the moment, generally they are small amounts and in the short or medium term. For example: weddings, trips, repairs, and more.
Consumer Loans: These are used to finance durable consumer goods such as cars, furniture or appliances.
Study Loans: this type is used to finance university studies at the baccalaureate, bachelor’s or master’s level. In general, the interest rates on these are lower.
Loans for Companies: these are made by companies for production, investment in fixed assets, for expansion purposes or for the start-up of different projects.
Home Loans: these are medium or long-term loans with different interest rates (fixed, variable or mixed) with real guarantee, which translates into a mortgage on the house.

In the case of real estate, we are interested in housing loans to finance purchases within this area.

Interest Classification

Fixed Interest: is that interest rate that will remain fixed for the payment time stipulated in the loan.
Variable Interest: this type of interest occurs when a person is granted a loan but an interest charge is not stipulated exactly; therefore in the future it may increase according to some market value or exchange table.
Mixed Interest: when both interest rates are used: mixed and fixed.
Nominal Interest: this rate is calculated on the real value of the product or good, without taking into account the expenses incurred or incurred in the production and sale costs.
Annual Interest: a financial term that applies to services or goods.

About Home Loans ...

What are the requirements to apply for a home loan?

The requirements vary depending on the financial institution and the specific characteristics of who is requesting the loan; for example if you are a salaried worker, independent worker or retired. Generally they request: bank certificates, employment letter, withholding certificate, copy of the income statement, photocopy of the identity card, among other documents.

How much can I request in a home loan?

The first thing to know is that the amount to be approved for financing depends on the income of the family or the person requesting it. Previously, financial institutions only lent the maximum of 70% of the value of a real estate. Currently, up to 95% of the value of a property can be financed, but all this depends on the results of the study done to the applicant months before the loan approval.

How many installments are paid on a loan?

The amount of installments and the time that a loan is paid (if it is medium or long term) depends on the amount of money and what is agreed with the bank. Here the interest rate and the interest rate that you are using also comes into consideration because it will directly affect the amount of money that is paid in each installment.

How much do you pay in total for a loan?

This is difficult to determine exactly without having the interest rate of the bank you are going to use. There are calculators online that can help you calculate the total you will pay once you have all the necessary information. However, it must be taken into consideration that each specific case may present different variables.

If you have questions about this information about loans in the home buying process, feel free to contact a NATIVU advisor to provide important details and simplify the buying process.

Contact our Real Estate Advisors