What Should You Know about Advance Payments while Buying a Home in Panama

1. What Should You Know about Advance Payments while Buying a Home in Panama? Looking for a home away from home? Panama has become a prime destination for homebuyers and property investors all over the globe. It’s not hard to see why. The Latin American country is continuously experiencing stable economic growth, offers an excellent quality of life, and happily welcomes foreign investors. But what are some things you must consider before buying a home in Panama? Everything you need to know about buying a home in Panama  Purchase agreements Purchasing a new property in Panama starts with one thing: an offer. You can work with a realtor to take your offer to the seller and begin negotiation, allowing you to move to the next step of the process. However, take note that you, the buyer, and the seller must agree on three things: the property’s sale price, the down payment, and the terms and conditions of the sale. As the buyer, you must consider additional costs, including legal, registration, inscription, and notary fees. Luckily, Panama offers a variety of benefits for foreign investors, such as the Golden Visa, Friendly Nations program, and Panama retirement visa. After the contract to purchase is drafted and signed and all due diligence has been completed, the closing will take place in 30 to 60 days.  Financing options Most foreign investors in Panama purchase properties with cash or via bank transfer. Of course, this is not always the case, and you may require financing for your property. You have two options: seller financing and a bank mortgage. During seller financing, a seller may offer to finance your purchase of their property, allowing you to secure the new home while you’re still in the process of selling your original home. This option also prevents you from dealing with a bank or mortgage company in Panama.

2. Why would you want to avoid dealing with a bank? Generally, it’s much more time- consuming for foreigners to obtain a mortgage in Panama. However, if you choose to go this route, you must prepare several documents, including but not limited to a signed and completed mortgage application, photocopies of your unexpired passport and photo ID, credit report from your country of residence, two original bank reference letters, and title deed of property from Panama’s Public Registry. Is buying a home in Panama the right decision for you? Work with an experienced realtor in the country to help you through the purchasing process!