The right order is bank first, house second. Buyers who arrive pre-qualified negotiate better and close faster.
1. Check your credit history
The Comisión Nacional de Bancos y Seguros (CNBS) runs the public credit information registry, and there are authorised private credit bureaus. Request your report, correct errors and clear any arrears before applying.
2. Work out your repayment capacity
Banks measure how much of your income the instalment would take. Keep proof of employment and salary, bank statements and, if self-employed, tax returns at hand.
3. Get pre-qualified
Compare at least two or three lenders: rate, term, required down payment, mandatory insurance, fees and whether the rate is fixed or variable. Ask for the total cost rate in writing.
4. Choose the property and sign with a condition
If you sign a purchase promise before final approval, include a financing condition: if the bank does not approve within a set period, you get your deposit back. CARACOL's model includes it.
5. Appraisal and approval
The bank orders an appraisal. If the value comes in below the price, you usually cover the difference or the price is renegotiated.
6. Deed with mortgage
The sale and the mortgage in favour of the bank are signed, and the bank pays the seller. Both are recorded at the Instituto de la Propiedad.
Housing programmes
Public housing programmes and rediscount credit lines exist and change over time; ask your bank which apply to you.