Panama Mortgages - Financing Property in Panama
(targetpanama.com) Panamá City is the second largest banking center in the world, trailing only Switzerland. In addition to the national banks, Panama City is home to more than 150 international banks. Each institution has its own requirements for offering loans, but one thing is clear; when you find your property in Panama, you will be able to find your financing as well.
In some cases, residents of Panama enjoy terms which are somewhat better than those offered to foreigners. These conditions include lower down payments and longer terms for Panamanians than those that are offered to foreigners.
As a general rule, when applying for a mortgage, being prepared in advance will make things go more smoothly. Regardless of which bank you choose, you will be well prepared if you have a standard package of items. You may be required to have these items approved by the Panamanian Consulate in your home country or by an internationally recognized notary. These items will speed up your application process with almost any bank:
1. Photocopy of your entire passport including stamps
2. Photocopy of one additional photo ID such as a drivers license
3. Utility bill showing your name and physical address
4. Resume including personal education
5. Two original bank reference letters
6. Two original professional reference letters
7. Photocopy of bank statements for at least one year
8. Last two years of tax returns
9. Letter explaining reason for purchase of the property (residence, vacation home, rental property, investment, etc.)
10. Appraisal of the property that was performed by a bank-approved appraiser
11. Purchase contract
12. Title deed of the property
13. Completed and signed bank mortgage application
In Panama, applying for a mortgage can turn into a full-time job. Banks have different guidelines, there are areas in the country that they won’t provide mortgages and compiling all of the needed documents takes a great deal of time. Prior to beginning this process, it is wise to first consult a mortgage broker for further advice. In most cases, the more informed you are, the more smoothly the process will go.
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