Financing  by  Dominican  Mortgage  Broker

8.5% Rate, up to 20 years

Required Mortgage Application Documents

• Lender Applications, English & Spanish version , filled out as complete as possible to include bank account numbers, phone numbers, and addresses. Both copies signed. We will forward copies to you. If co-buying both parties must sign both applications.

• Credit Report Release Form . We will forward this to you – A TransUnion Credit Report will be pulled. If you have credit issues, you should have them resolved before you submit an application. The lender, just like in the U.S. or Canada will closely review your credit history. A negative credit report or low credit score are grounds for rejection and/or extra time to get your credit report corrected.

• Copy of the photo and facing page of passport . Both parties if co-buying.

• Tax Returns for Last Two Years . Both parties if co-buying and if you filed separately.

• W-2 or T-4 forms for Last two Years . Both parties if co-buying.

• If you list an asset on your application such as ownership of real estate, rental property or a company; be prepared to show proof of ownership, rental contracts, financial status, etc. unless your income is such that the asset proof is not required.

• Bank statements for the most recent three months preceding the application date. Both parties if co-buying, unless you have a joint account.

NOTE: PREQUALIFICATION IS MADE WITH ABOVE DOCUMENTS

• A Signed Mortgage Broker Contract . We will forward this to you.

• Copy of the property title – provided by the seller. If you or your agent cannot obtain one you should contact your real estate agent or our office immediately. The original title will be held by the lender for the life of the mortgage.

• Property Appraisal , conducted by a civil engineer appointed by the lender!

NOTE: ABOVE DOCUMENTS SUBMITTED TO LENDER FOR PROCESSING

• Most recent year’s property tax statement (must be present with the closing documents) – Seller provides to lender/buyer.

• Certificate of Liens and Encumbrances (must be present with the closing documents) – to ensure there is no outstanding debt associated with the property. Seller provides to lender/buyer.

• Survey or a deslinde – is now required. You may purchase a property without a survey but will not be allowed to resell it without one. Lenders require a deslinde. Seller provides.

• Property & Mortgage Insurance (proof required at closing) – The borrower is required to obtain both life (mortgage insurance) and property insurance from the lender. Those premiums are paid along with the mortgage payment. A medical exam from a lender approved physician is required.

• Property Purchased from A Company – Company must provide a notarized and signed statement to the lender/buyer that all shareholders in the company agree to the sale.

• Open bank account with the lender . Your mortgage payment is made through the account. Opened on or before you close.

Real Estate Issues – If you have a realtor you should maintain close contact with that person. He or she can provide you information on realty procedures, pre-purchase and purchase contracts. If you do not have a realtor or lawyer we will make a ecommendation only on your request.

Forms and Procedures – all forms and procedures can be completed via e-mail, fax or phone. You should be here to sign for the mortgage but with a Power of Attorney even that can be done for you.

Debt To Income Ratios:

Front End Ratio (Housing Expense) – Shows how much of your gross (total) income goes toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes, and homeowners insurance should not exceed 28 percent of your total monthly income. To calculate your monthly housing expense, multiply your annual salary by 0.28, then divide by 12 (months), this is your maximum housing expense. An example would be a home buyer earns $100,000, at 28%; the maximum yearly housing expense would be $28,000, divided by 12 would be a monthly expense of $2333.33.

Back-End-Ratio (Total Debt compared to Total Income) – Shows how much of your gross income is expended for all of your debt obligations. This includes your mortgage payment, car loans, child support, alimony, credit card bills, student loans, and condominium fees. In general your monthly debt should not exceed 36% of your total income. To calculate your housing expense multiply your yearly income X 36% then divide by 12 (months). That will give you the maximum housing expense. Using the example above, the total monthly payments should not exceed $3000 ($100,000 yearly income x 0.36 = $36,000 / 12 months = $3000).

Essentially, to obtain mortgage financing in the Dominican Republic means that you have income, assets and not mentioned above, a good credit report. Documentation is important and a little patience helps, not only for mortgage financing but other areas of business as well. So look things over carefully, take your time, then come in and visit, we can help you finance that Caribbean Dream.

by Dominican Mortgage Broker