Financing Real Estate in Costa Rica for Non Residents
Bank Financing, Mortgages, Closing Services, Escrow Services and Post Closing Services for Foreigners Buying Property in Costa Rica (for U.S., Canadian and U.K. borrowers)

Costa Rica Luxury Estates signed an exclusive Mortgage Alliance Agreement with Stewart Title Costa Rica ABC. The Mortgage Alliance Program (MPA), a division of Stewart Title Costa Rica, is a service offered to clients from the United States, Canada and the United Kingdom who are in need of financing part of their investment in Costa Rica. Stewart Title Costa Rica provides a suite of products and services, enhancing the local real estate transaction processes. The products and services include title guarantees, escrow services, closing coordination, online file management and other administrative services necessary for successful real estate closings.

The main objective is to provide the best financial solutions to the residential buyers, according to their particular needs, increasing the number of transactions and enhancing them at the same time. This is a unique opportunity to finally solve so many of the problems that have made lending in Costa Rica so difficult. MAP has closed over 300 financed transactions in Costa Rica, Mexico and the Dominican Republic from 2007-2008, totaling over $150 million in loan amounts.
• Purchase, Refinance and Cash Out
• Whether you are purchasing, refinancing or looking to cash out some of your equity, we will provide you with the best options available.
• Finished Housing, Construction, and Lot Loans
• The Mortgage Alliance Program (MAP) focuses on residential financing and includes a variety of products for you to choose from.
• Apply at No Cost

You can apply - for free - to find out which program will likely work best for you. We will reply within 24 hours from receiving your Application Form. Send us an email to info@costaricaluxuryestates.com and we will send you the Application Form.

What is the Mortgage Alliance Program (MAP)?
The Mortgage Alliance Program was designed to provide the best mortgage products available in the market with efficient loan closing services. Steward Title has agreements with the most important lenders in the market to provide mortgages in Costa Rica.

Objectives of the Mortgage Program:
The MAP has two main objectives for non residents from the United States, Canada and the United Kingdom buying property in Costa Rica:
1. To provide the best mortgage products available in Costa Rica
2. To provide the most efficient loan closings services in Costa Rica

How long does it takes to get financing through this process?
Pre qualification takes approximately 24 hours from the time of submitting your Application Form. Once this is done and you are pre-qualified for credit, you will be presented with the best option available and the closing process will take from 30 to 45 days.

An Overview of the Loan Process in six steps:
- Get Pre-qualified - Submit the Loan Package - Obtain Loan Approval - Send Upfront Fees - Issue Legal Documents - Close your Loan!

1. Get Pre-qualified
When buying real estate in Latin America, you may be pre-qualified to ensure you have good possibilities of actually getting the loan. A pre-qualification can be easily completed through the internet and over the phone. It does not require any paperwork, and you can get a response within 24 hours. It will give you a clear idea of what amount you may be capable of borrowing. Once you are ready to begin the actual process, the next step is to get pre-approved. Pre-approval requires authorization to pull your credit report and the completion of a simple form.

Being pre-approved will:
1. Inform you of your maximum affordable home value and save you from previewing properties outside your price range.
2. Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
3. Help you close quickly, since your loan is pre-approved.

A pre-approval can be issued within 24 hours, and you will obtain a letter from the Mortgage Alliance Program (MAP), stating the program conditions that best suits your needs. This letter will be valid for a period of three (3) months. After that, it will be necessary to have you repeat this process.

2. Submit the Complete Loan Package
Your pre-approval letter will be accompanied by a Loan Package for you to complete and send back. This Loan Package will contain the following application documents:
1. Uniform Residential Loan Application (1003)
2. Know Your Customer Form (KYC)
3. Application for Title Insurance
4. Escrow Agreement
5. Company Information Questionnaire (Self-Employed Only)

Additionally, you will be required to submit the following supporting information:
1. Tax returns for the past two years
2. W2 forms for the past two years
3. Bank statements for the past three months
4. Last pay stub
5. Copy of passport and driver's License
6. Purchase agreement
7. Copy of life insurance policy (If required)
8. CPA letter (Self-Employed Only)
9. Commercial references (Self Employed Only)

The Loan Package may be submitted via e-mail, however, participating lenders will require the original application forms on closing day. If you do not plan on being present, please send the originals via courier. DO NOT use whiteout. Please note that the Documents shown above are for a Full Document Application, the requirements may vary according to the lender that funds the loan.

3. Obtain Loan Approval
Once your loan application has been received, we will start the loan approval process immediately. This involves verifying your:
* Credit history
* Employment history
* Assets including your bank accounts, stocks, mutual fund and retirement accounts
* Property value
* Based on your specific situation, additional documents or verifications may be required.

This part of the process usually involves a lot of interaction with the participating lender. It is here that our mortgage specialist will come into play to serve as liaison with participating lenders to ensure the loan is approved.

4. Send Up Front Fees
Once the lender has issued Loan Approval, you will be required to fund the required upfront fees into your escrow account. These upfront fees will be detailed in the Escrow Agreement and usually include:
1. Appraisal
2. Application Fee
3. Underwriting Fee
4. Escrow Fee
5. S.R.E. Permit (Mexico Only)
6. Certificate of No Liens (Mexico Only)
7. Notary Upfront Fee (Mexico Only)

5. Issue Legal Documents
Once the upfront fees have been received the following steps need to be completed to gather all the documents that will be required to close:
1. Title Research on Property*
2. Issue Title Commitment (If Required)
3. Issue Appraisal
4. Draft Guaranty Trust
5. Obtain S.R.E. Permit (Mexico Only)
6. Obtain Certificate of No Liens
7. Issue Power of Attorney (If Required)
8. Make sure funds needed to close are in place

* It is important to clarify that in order for a lender to issue a loan; it requires collateral, which is the property in country. This property needs to be legally registered and should have its individual property ID (Known as Folio Real in Costa Rica). If the property does not have its ID, the lender will not have collateral and will not grant the loan. It is highly recommended that you ask the seller if the property is already registered. We verify this early in the process, so that we do not go through the application process to find out that the property is not in good standing.

6. Close the Loan!
Once all the required documents and funds are in place, the assigned Mortgage Specialist will coordinate the closing time and place with all the parties. It is very important to be aware that unless a Power of Attorney (POA) has been issued, you will be required to attend the closing. POAs are more commonly used in Mexico, although they can also be used in Costa Rica and the Dominican Republic. Closing times will also vary depending on the lender and the country where the property is located. From the moment that you submit the complete loan package to the time the loan is closed and funds are disbursed, the expected time to close is:

- Costa Rica 30 to 45 days

Through our alliance with Stewart Title our clients will receive a wide variety of first class services for non residents:

Title
One of the most important aspects of protecting a real estate investment is making sure the title to the property is in proper order. A title guaranty or title insurance policy protects your ownership and use of the property by guarding against unknown and hidden risks that may cause you loss or affect your ownership.
Covered title risks include*:
• Invalid documents executed under expired/non-existent power
• False assumption of identity concerning the legitimate property owner
• Liens and financial burdens charged to the previous property owner
• Non registered property easements
• Hidden heirs of previous property owners

What does a title guaranty provide?
• Payment of legal expenses to defend a guaranteed title
• Payment of valid claims up to the value of the guaranty (refer to your policy for specific coverage details)
• Thorough investigation of the title prior to issuance of title guaranty

Peace of mind
A title guaranty is purchased for a one-time fee and once acquired, protects the policy holder as long as there is an interest in the property. Title insurance is a contract of indemnity that protects the property rights transmitted to a new property owner/lender and indemnifies the policy holder against damage or loss arising from a defect in the title to real property. Title insurance is an important indemnification contract, but Stewart Title Latin America believes it is more important to do the proper research and identify any problems before the purchase.

Covered title risks include (refer to your policy for specific coverage details):
• Invalid documents executed under expired/non-existent power
• False assumption of identity concerning the legitimate property owner
• Liens and financial burdens charged to the previous property owner
• Non registered property easements
• Hidden heirs of previous property owners

What does a title guaranty provide?
• Payment of legal expenses to defend a guaranteed title
• Payment of valid claims up to the value of the guaranty (refer to your policy for specific coverage details)
• Thorough investigation of the title prior to issuance of title guaranty

Escrow Services
When purchasing property, one of the most important considerations for both a buyer and a seller is whether and under what conditions the transaction funds will be safely held and distributed by an independent party. In an international transaction, this issue is even more important and often complicated, as either the purchaser or the seller may not be familiar or comfortable having funds deposited in an unfamiliar jurisdiction or with an unfamiliar attorney or bank. Utilizing Stewart's escrow services provides cost-effective security to all parties in the real estate transaction.

Closing Services
Beyond providing customers title guaranty and escrow services, Stewart Title Latin America provides a host of coordination and closing services to help streamline the real estate transaction process. Acting as a single point of contact for closing details, Stewart will provide all the necessary notary and legal services to close the real estate transaction. When utilizing Stewart's closing services all details will be managed by a highly trained closer, who will guide you through the entire transaction process.

Mortgage Services
STLA implemented the Mortgage Services Division to better serve our customers in the region. STLA does not give financial advice, but assists our customers in finding those that can. We want to help create a bridge between the lender and you - the customer - facilitating your ability to obtain financing for your real estate transaction. In markets that have been traditionally "cash only", significant progress has been made in recent years, with local lenders, mortgage brokers and US-based financial institutions creating a more "US -style" process, including standard loan documents and procedures familiar to the US customer purchasing second homes abroad. However, local real estate and lending procedures still must be followed in all cases and STLA's local knowledge will help to guide you through those steps. We strive to make the process as friendly for you as possible - our goal in every closing.

Other services include on-line file management and post closing services.