After months of looking, and countless hours browsing the Internet, you’ve finally found your dream vacation home. The white sandy beaches and natural beauty of Punta Cana are just yards from your front door. You’re all set to enjoy life in your little slice of Paradise.
Except for one not so tiny problem: you aren’t approved for financing.
House-hunting can be an exhausting, stressful exercise that needs all your attention to make sure you’ve covered all the bases. The relief of finding your dream home can quickly turn into a nightmare if you haven’t first qualified for a loan.
Pre-Qualifying and Pre-Approval are not the same
This is an important difference. Pre-qualifying only gets your foot in the door. Pre-approval takes the lending process a stage more: you will need to provide financial information, including a credit report and possibly your tax returns. Once you have a letter verifying that you are pre-approved for financing, your REALTOR® will be in a much better position to negotiate the best deal for you. The letter tells the seller that you are a serious buyer, and they are much more likely to consider your offer.
Why apply for a loan before you start looking?
Firstly, like most REALTORS®, it’s a lot easier for me to help you if I know what your budget is. That way, I can save you time by not showing you properties that don’t fit your wallet. Secondly, buyers who are pre-approved are much more likely to see their offers accepted.
In short, as a REALTOR®, I know that if you have been pre-approved for financing, there is a much better chance of the deal going through.
Buyers in Punta Cana may want to consider stopping into one of the main banks in the area. In the Dominican Republic, some banks offer financing to UK, Canadian and US citizens (including residents of Puerto Rico.) It’s possible to get up to 70% financing on a 25-year mortgage at rates beginning at 7%.
More information about pre-approval and the documents you will need to provide, contact me at (809) 552-0421.