The banks here in Panama prefer young professionals as there is less risk, so loan applications from young professionals usually get approved.
When applying for a home loan, there are several requirements and checks that you have to pass. You will have to go through an interview at the bank. If you want to buy an apartment, you should at least have a contract of the property that the developer is offering you. It does not have to be signed. You just need to show the contract to the bank in order for them to have an idea about what you are looking for, how much you need, and so the bank knows that the collateral is worth the investment. Then the bank will ask for your last 2 years of income tax returns for them to see how much money you are making. If you have any other income that you can prove belongs to you, it is advisable to declare that with the bank. Even if these are just side businesses and no matter how small the earnings were, the bank will still consider that as income.
Then the bank will ask you for a life insurance policy that will back up the loan. They will have a doctor see you, too. The bank will also analyze your credit. They will check if you are a good payer and how many loans you have. The bank will ask you if you will get the property under your name or under a corporation. The bank will request for an appraisal of the property and a third party performs it. The prices they will get are real value, market value, and “venta rapida” or the quick sale price. Venta rapida is what the bank will use in giving you the loan. The down payment is figured out as a percentage of the quick sale price. The bank will approve or decline the loan based on the results of these checks.
The term of the loan depends on your age and income. The loan term is usually only until you are 70, but there is a way around that. You may opt to have a co-mortgagor or you may get a life insurance policy. That way, the bank is secure that when you are gone, the bank will still get paid.
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