by Victor Matos Cabrera
Foreign individuals can request a mortgage pre-approval whether it is to buy your first or second home to rest or invest. To acquire properties with mortgage loans in Punta Cana, you only have to worry about choosing the home of your dreams and sending the requested requirements.
You have financing of up to 75% of the appraisal value of the home, with up to 20 years to pay.
Version en Español: Requisitos para solicitar prestamos hipotecarios en Punta Cana
Take the first step toward the right mortgage.
Apply online to see how much you can get approved for and determine your closing costs.
Mortgage pre-approval requirements for Non-Resident Foreign Individuals
- Copy of the current passport: Must include the identity data section and the entry and exit stamps, as well as the photo on the document.
- Copy of the document from the official body according to your immigration status, such as: card issued by the General Directorate of Migration for “Temporary Worker” or “Student”; or card issued by the Ministry of Foreign Affairs (MIREX) for foreign diplomatic and consular officials, representatives and members of international organizations, etc.
- Image of the identification document from your country of origin, which could be an identity card from the country of origin.
- Additional identification document, which could be a driver’s license or social security card.
- Tax return from your country of residence, for the previous year.
- Proof of income:
- A- If you are a salaried employee: Employment letter issued by your employer or the last 3 payroll statements
- B- If you are self-employed: Communication explaining the nature of its activities. Documents that prove said activity, such as a copy of the commercial or industrial license of the business.
- If required: Bank and commercial references.
- Bank references are the certifications of financial institutions or their account statements. Service invoices in the name of the person who wishes to be linked as a client are accepted.
- Commercial references include: Electricity, water, cable, etc. These must include address, phone numbers, email.
Start the mortgage pre-approval process with one of our real estate agents.
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Bávaro, Higüey, La Altagracia, Dominican Republic DetailsGet pre-approved for a mortgage loan in Punta Cana
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Understanding Closing Costs: What You Need to Know Before Buying a Home
When purchasing a home, your down payment is not the only expense you’ll encounter at the closing table. Closing costs are additional fees and charges that come with finalizing your home purchase. These costs include appraisal fees, attorney fees, and escrow funds, among others. Many first-time homebuyers underestimate the amount they’ll need to pay in closing costs, but there are ways to reduce these expenses. In this guide, we’ll break down everything you need to know about closing costs and provide helpful tips for minimizing their impact on your budget.
What Are Closing Costs on a House?
Closing costs are expenses incurred during the process of creating your mortgage loan, and they are paid at the closing of your home purchase. These costs cover various fees, such as home appraisal and title searches. The specific closing costs you’ll need to pay depend on the type of loan you choose and the location of the property.
How Much Are Closing Costs?
Title Transfer Fee
The title transfer fee in the Dominican Republic is 3% of the property’s declared value. This fee is paid to the government for updating the property’s title and transferring ownership to the new buyer.
It’s important to note that closing costs do not include your down payment.
Attorney Fee
The lawyer fees for transferring a title in the Dominican Republic can vary based on several factors, including the complexity of the transaction, the value of the property, and the specific lawyer you engage. Typically, lawyer fees for a property title transfer in the Dominican Republic can range from 1.5% to 3% of the property’s purchase price.
Attorney fees cover the cost of having a real estate attorney coordinate your closing and draw up paperwork for your title transfer.
Keep in mind that legal fees can be subject to negotiation, so it’s advisable to discuss the costs upfront with the lawyer and clarify the services included in their fees. Additionally, there might be other expenses related to the title transfer process, such as government taxes, notary fees, and registration fees, which you should also consider when budgeting for the overall transaction.
To get the most accurate and up-to-date information on lawyer fees for title transfers in the Dominican Republic, it’s best to contact a local real estate attorney directly. They can provide you with a personalized quote based on your specific circumstances and the property you are looking to transfer.
Application Fee
Some lenders charge an application fee to process your loan request. This fee varies by lender but can be up to $500. This may be a separate fee or used as a deposit to be applied to other closing costs later.
Appraisal
Your lender will order an appraisal through a third-party appraisal management company that’ll send a professional appraiser to take a look at your home and determine how much your property is worth. They’ll do some basic safety checking to make sure the property is move-in ready. Appraisals are important because they set the value of the property, which in turn factors into the amount you can borrow. This also ensures you aren’t overpaying for a property. Appraisal fees are usually in the $500 to $1000 range, but they can be higher.
Courier Fee
Courier fees cover the cost of transporting mortgage documents. Expect to pay around $100 in courier fees if you will send mail via Fedex or DHL.
Credit Reporting Fee
Credit reporting fees cover the cost of pulling your credit report and looking at your credit score. Most credit reporting fees are between $10 and $100.
9. FHA Mortgage Insurance
With an FHA loan, you’ll need to pay a mortgage insurance premium upfront at closing. The current MIP rate is 1.75% of your base loan amount. For example, if you borrow $100,000 to buy your home, your MIP due at closing is $1,750. This upfront payment is separate from your monthly MIP, which ranges from 0.15% to 0.75% of your loan value.
Homeowners Association Fee
If your property is located in a homeowners association, your homeowners association transfer fee covers the cost of moving HOA fees from the seller to the buyer. It ensures that the seller is up to date on their HOA dues and provides you a copy of the association’s payment and dues schedule as well as HOA financials. The seller covers this cost.
Homeowners Insurance
Homeowners insurance is a type of protection that compensates you if your home gets damaged. Most mortgage lenders require you to have at least a certain amount of homeowners insurance as a condition of your loan to cover damage. You have the option of also getting protection for the contents within your home and liability coverage if someone gets injured on your property. Many lenders require you to pay a year’s worth of homeowners insurance at closing. As a general rule, expect to pay about $50 a month for every $100,000 in home value. For example, if you buy a home worth $200,000, you’ll likely pay about $100 per month for homeowners insurance. This means that your lender might require you to pay $1,200 into an escrow fund at closing.
Loan Origination Fee
Loan origination fees cover the cost of processing and underwriting your loan. These fees go to your lender in exchange for underwriting your loan and creating your loan paperwork. Expect to pay about 1% of your loan’s value in origination fees. Along with mortgage discount points, this will show up under origination charges on your Loan Estimate.
Who Pays Closing Costs?
Both buyers and sellers are responsible for paying closing costs, although buyers usually bear the majority of the expenses. In certain situations, buyers can negotiate with sellers to cover a portion of the closing costs. This concession can make the home purchase more affordable for the buyer. However, there are limits to the percentage of the mortgage value that sellers can contribute, which vary based on loan type, occupancy, and down payment.
How To Reduce Closing Costs
While closing costs are part of the homebuying process, there are ways to minimize their impact on your finances:
Tips To Reduce Closing Costs
Shop Around For Lenders: Compare different lenders’ fees and interest rates to find one with lower closing costs and competitive rates.
Request Seller Concessions: In a buyer’s market, ask the seller to help cover closing costs as part of the negotiation process.
Consider No-Closing-Cost Loans: Some lenders offer no-closing-cost loans, which may have higher interest rates but can save you upfront expenses.
Negotiate with Lenders: Don’t be afraid to negotiate with your lender to reduce certain fees or explore options for rolling closing costs into your mortgage.
FAQs: Closing Costs
Frequently Asked Questions
How Can I Estimate Closing Costs?
- As a general rule, expect to pay about 3% – 6% of the loan amount in closing costs. Ask your lender and real estate agent about property taxes and other state-specific fees.
When Do I Pay Closing Costs?
- You’ll typically pay closing costs during the closing meeting when you provide your down payment and other required payments.
How Long Does the Closing Process Take?
- The closing process usually takes about 30 – 45 days from the time you apply for your mortgage.
Can Closing Costs Be Wrapped Into My Mortgage Loan?
- Some lenders may allow you to roll closing costs into your mortgage, but this may result in higher interest payments over time.
Closing costs are an integral part of the homebuying process, and it’s essential to understand them thoroughly before finalizing your loan. By shopping around for lenders, negotiating with sellers, and exploring different loan options, you can minimize the impact of closing costs on your finances and make your home purchase more affordable. Remember to be well-prepared and informed when attending the closing meeting to ensure a smooth and successful homebuying experience.
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