If you are considering purchasing a home in Puerto Rico, there’s a bit of homework you should commit to before you start the search. But if you follow these tips, you’ll soon be on your way to making a well-informed decision about where to look and where to buy.
Getting the home of your dreams in Puerto Rico means figuring out a few things first
Before you start combing the internet to find that perfect house, you will need to determine a few things. Doing so will help you narrow down your search, and give you a much better place to begin the process of buying a home in Puerto Rico.
You’ll begin by creating a list of all the must-haves your potential house should possess. Start with the minimum number of bedrooms and bathrooms, and go from there. Is a large yard necessary, or would you rather live the condominium life? Is a bonus room a dealbreaker? What outdoor amenities are important to you? Once you list what you need, you’ll turn your attention to what you want but could live without.
This list of wants should cover everything from home layout to what high-tech features the dwelling comes equipped with. Take your time and think about it, and you’ll soon have the specs for the home you are looking for.
Next, you’ll need to determine how much home you can afford. If you are paying cash for it, this will be pretty simple. But if you need to finance your home in Puerto Rico, a lender will use data to see how much of a mortgage payment you can comfortably pay each month.
This is done by calculating your income-to-debt ratio. Your lender will ask you to provide proof of income, typically by way of two years’ worth of W2s and income tax returns. Then, they’ll pull a credit report to see your current revolving debt load. A ratio is given, with lenders liking to be 36 or under.
You’ll begin by creating a list of all the must-haves your potential house should possess. Start with the minimum number of bedrooms and bathrooms, and go from there. Is a large yard necessary, or would you rather live the condominium life? Is a bonus room a dealbreaker? What outdoor amenities are important to you? Once you list what you need, you’ll turn your attention to what you want but could live without.
This list of wants should cover everything from home layout to what high-tech features the dwelling comes equipped with. Take your time and think about it, and you’ll soon have the specs for the home you are looking for.
Next, you’ll need to determine how much home you can afford. If you are paying cash for it, this will be pretty simple. But if you need to finance your home in Puerto Rico, a lender will use data to see how much of a mortgage payment you can comfortably pay each month.
This is done by calculating your income-to-debt ratio. Your lender will ask you to provide proof of income, typically by way of two years’ worth of W2s and income tax returns. Then, they’ll pull a credit report to see your current revolving debt load. A ratio is given, with lenders liking to be 36 or under.
Some will approve you for a mortgage with a number into the low 40s, though you’ll likely be paying a higher interest rate.
With the income-to-debt ratio calculated, the lender will let you know what payment amount you can make based on your income and current debt. A pre-approval letter is generated, which you will show to your REALTOR®.
With the income-to-debt ratio calculated, the lender will let you know what payment amount you can make based on your income and current debt. A pre-approval letter is generated, which you will show to your REALTOR®.
Your homebuying experience will be much easier with a REALTOR®
Now that you know what you are looking for in a home and how much you can afford to pay, the hunt to find that perfect place can begin. You might be tempted to scour the internet for a home, but searching without a game plan, even when you plug in your personal parameters, can take up a lot of needless time. It’s recommended to use a qualified REALTOR® to maximize your homebuying experience.
A REALTOR® knows the areas you’re interested in purchasing property like the back of their hand. They know the ins and outs of the neighborhoods and the available housing inventory, and they have the skills to negotiate the best deals possible. Buying a home in Puerto Rico will require multiple professionals and lots of legal documents; for these reasons, it can be pretty stressful if you go at it alone. But if you have a REALTOR® working on your behalf, the weight of the process will be taken from your shoulders.
A REALTOR® knows the areas you’re interested in purchasing property like the back of their hand. They know the ins and outs of the neighborhoods and the available housing inventory, and they have the skills to negotiate the best deals possible. Buying a home in Puerto Rico will require multiple professionals and lots of legal documents; for these reasons, it can be pretty stressful if you go at it alone. But if you have a REALTOR® working on your behalf, the weight of the process will be taken from your shoulders.
Decide what neighborhood you’d like to live in
Buying a home in Puerto Rico will also mean figuring out what neighborhood you want to live in. If you have school-aged children, you’ll want to research what areas have the best schools and nearby parks. Maybe overall walkability is important to you, too.
Puerto Rico has a number of neighborhoods and communities that are well-suited for virtually any lifestyle or need. You might want to be in a luxury neighborhood. If that’s the case, consider Miramar, Ocean Park, or Isla Grande. Or maybe you’d rather be in the middle of the action, living among the terrific and exciting nightlife San Juan has to offer. In that case, Old San Juan would be worthy of a tour.
No matter where you want to live, it’s important to learn what you want a neighborhood to offer. Discuss these concerns with your realtor, as they can help you find the perfect neighborhood that best matches your criteria.
Puerto Rico has a number of neighborhoods and communities that are well-suited for virtually any lifestyle or need. You might want to be in a luxury neighborhood. If that’s the case, consider Miramar, Ocean Park, or Isla Grande. Or maybe you’d rather be in the middle of the action, living among the terrific and exciting nightlife San Juan has to offer. In that case, Old San Juan would be worthy of a tour.
No matter where you want to live, it’s important to learn what you want a neighborhood to offer. Discuss these concerns with your realtor, as they can help you find the perfect neighborhood that best matches your criteria.
Consult with a lender about your financing options
If you need your home to be financed, you’ll want to review all of your financing options with your lender. There are a variety of programs out there that could mean lower interest rates and down payment assistance.
One popular option for a mortgage is available to active and retired members of the U.S. armed services. The VA loan is backed by the Department of Veterans Affairs and gives low rates for those who qualify. You might also qualify for an FHA loan. This type of mortgage is popular with first-time homebuyers, especially those with new or less-than-perfect credit. An FHA loan offers low-interest rates to borrowers and down payments as low as 3.5%.
No matter what avenue you choose for your home mortgage, it’s important to know all your available options. Be sure to ask your lender about these options and have a full understanding of them before you make a decision.
One popular option for a mortgage is available to active and retired members of the U.S. armed services. The VA loan is backed by the Department of Veterans Affairs and gives low rates for those who qualify. You might also qualify for an FHA loan. This type of mortgage is popular with first-time homebuyers, especially those with new or less-than-perfect credit. An FHA loan offers low-interest rates to borrowers and down payments as low as 3.5%.
No matter what avenue you choose for your home mortgage, it’s important to know all your available options. Be sure to ask your lender about these options and have a full understanding of them before you make a decision.
The bottom line
Whether you’re moving to Puerto Rico for a new job or retiring there, the process of buying a home, including Dorado, Palmas del Mar, and San Juan homes for sale, will be made simpler with the skills of an expert REALTOR®. Consider the expertise of Real Estate Lawyer and Broker, Maria Isabel Santiago when you are ready to commit to making Puerto Rico your new home.
