Jumping Through Hoops To Get Your Mortgage in Costa Rica

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The challenges you will face when attempting a mortgage application for property in Costa Rica extend well beyond the financial.

Obtaining a mortgage can be difficult for most of us at the best of times, but when it comes to being an expat wanting your own little piece of paradise you will certainly have more than your fair share of hoops to jump through before you can successfully navigate your way to an approval. Read on to discover what some of your biggest challenges will be so you are at least a little prepared for the unexpected.

Forms, and lots of them, are a given for any type of major financial transaction – especially mortgages – so you can expect the usual mountains of paper work when going through a Costa Rican bank. What you might not be expecting are some of the extras many Costa Rican banks demand from foreigners — even if they are now legal residents.

You may be asked to supply at least 12 months’ worth of bank statements in order to obtain a ‘proof of income” letter by a certified CPA. You may not think this is cause for concern but the certified letter needs to be done within 30 days of approval. Given that there are various other hurdles to cross before approval you may find that the 30 days has expired before your other requirements are met.

In some cases bank customers applying for a mortgage have had to provide up to 3 proof of income letters before getting the timing just right and the due dates syncing up. This brings me to one of Costa Rica’s most endearing but equally frustrating cultural quirks.

Time literally doesn’t mean much in Costa Rica. It’s not generally thought of as a resource which can be squandered or managed efficiently. Therefore, the Ticos, or native population, are fairly relaxed in their day to day business dealings with what can only be described as a complete lack of urgency.

When you come from a culture where “time is money” the Costa Rican attitude of “it will get done when I get around to it” can be one of the most vexing when you are waiting for that all important phone call or document to get signed.

Depending on your age, many Costa Rican banks demand a medical examination. These are taken quite seriously and so are very comprehensive and generally required to be completed by a bank approved doctor. Tests may include an EKG, a full hour’s worth of prodding, poking, and answering questions, and up 17 blood tests to test for everything from cholesterol to blood sugar levels.

Costa Ricans may be quite relaxed about time and getting things done but these extensive medical tests prove that banks want to make sure you have enough longevity in you to at least make it through to the final payment.

While the Costa Rican mortgage market may make for a harrowing experience there’s no doubt that the real estate boom in the USA of yesterday has all but dried up. Costa Rica on the other hand is on the up and up and so offers plenty of scope for the savvy real estate investor to bring home the bacon — you just have to know how to jump through hoops.

Written by Scott Oliver, author of 1: How To Buy Costa Rica Real Estate Without Losing Your Camisa, 2: Costa Rica’s Guide To Making Money Offshore and 3. ¿Cómo Comprar Bienes Raíces en Costa Rica, Sin Perder Su Camisa?

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.