The Cape Verde Mortgage Process
The Cape Verde Islands are becoming a very popular place for people to set up holiday homes for themselves or for rent to others. These investments will only increase in value over the long term as more people start to recognize the benefits of a Caribbean-style holiday in a safer, less developed, and in a more convenient location.
There are now many companies offering buyers mortgage facilities for Cape Verde and it will pay you to investigate carefully before selecting one. An expert on mortgages in Cape Verde such as International Mortgage Solutions can give you impartial advice. Before you sign a contract that commits you to buying a property, you should first decide what type of mortgage you can secure. One should always be certain of their finances before signing a Contrato Promessa de Compra e Venda, as breaking it can have vast financial penalties.
Mortgage companies may offer terms ranging anywhere from 15 to 35 years. This particular idea offers redemption of your mortgage at 60, as opposed to 75 with the majority of programs. While numerous businesses offer loans of up to 70% of the acquisition price or the appraisal (whichever number is less) some businesses will offer nearly 85%.
When buying a property through a mortgage, you will likely find that your end financing and purchasing costs total 7% of the property price. This percentage breaks down as follows: 1% for personal legal costs; 3% of the amount borrowed for mortgage registry costs; 3% of the purchase price for Notary and Land Registry costs; approximately 2% for various mortgage and valuation fees.
Here is what you will need to qualify for a non-resident’s mortgage: You must have proof of income. That would be at least three pay slips. You will also need P60 forms dating back two or three years. Additionally, you will need to have at least six months worth of bank statements. People who are self-employed will have to show 3 years worth of their copies of personal and business tax returns and bank statements. You will also be required to present copies of your passports and proof of your residential address, both certified. You may be asked for translated copies of these documents; a bilingual attorney can help with this request.
