Loan and Mortgage in Grenada

Loan and Mortgage in Grenada

 

Securing financing is just one part of a real estate transaction.

RE/MAX Grenada is experienced at assisting both new and experienced buyers alike in all areas of real estate. Contact us if your needs include a professional REALTOR®. 

We have good business relationships with all of the reputable lenders in Grenada and they’ve helped us recognize some aspects that can make the process of applying for a loan easy.

For many real estate buyers, saving for a down payment is probably the most difficult step in the home-buying process. We should explain, that while many Financial institutions require equity of up to 25% from overseas buyers, a local buyer may find that this figure can be minimal from an institution with which he/she has good credit relations.

Actually, lenders in Grenada offer mortgage products with very affordable down payments and sometimes without down payments. 

 

The following are primary criteria for receiving financing in Grenada.

 

The Mortgage Applicant must:

1. Be financially capable of servicing the mortgage

2. Have a stable employment history

3. Be credit-worthy

 

Owning a home has always been a key component of most life goals. Home ownership also comes with several benefits, such as: - building equity,  becoming more engaged with the local community and that It serves as a stepping stone for long-term wealth creation.

Buying a home with a smaller down payment has distinct advantages. You're less likely to become "house poor," which can happen when you spend too much of your total savings on home ownership, leaving little cash in reserve for unforeseen emergencies or desirable home improvements.

Something to keep in mind when considering your loan options: putting less than 20 percent down can also result in the additional monthly cost of Private Mortgage Insurance (PMI). However, if your home value is appreciating, PMI can be eliminated in a few years through refinancing.

 

When applying for a mortgage, additional documents will be required in support of your application:

• Approved building plan (in case of construction)

• Detailed independent estimate for construction

• Copy of Title Documents or Deeds of Conveyance

• A property valuation

• Sale Agreement (letter from the vendor stating price)

• Bank Statement showing deposit and loan balances

• Picture Identification Card (National ID, Passport, and Driver’s  License are all acceptable)

 

The following documents will be required, as appropriate, but are not necessary for the first stage of the assessment:

• Property Tax receipt (current year)

• Lease rent receipts (for leasehold properties)

• Two references on the builder (if builder is not known to the Bank)

• Builder’s contract

 

When interviewing lenders and mortgage brokers, consider asking the following questions:

 

RE/MAX Buyer Tip:

Don't fudge the truth. A white lie on your mortgage application can be mortgage fraud. It may not be a big deal now, but it could come up later and haunt you. 

If you notice other fees popping up in your loan process, ask for an explanation.

You have a right to know what each fee is and why it's being charged.

 

 

Always remember, your RE/MAX Grenada Sales Agent is here to help!

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