Buy the Loan Before the Home

Ready to buy a Bahamas home? More to the point, ready to finance a home?

With the reduction of the prime rate earlier in the Bahamas in the summer, this is a good time to meet with a loans officer to see if you're ready to start the process.

Establish how much you can borrow, your monthly payments and the timeframe to pay off the loan on your Bahamas home.

Make a list of questions, such as can you make lump sum payments to help reduce the amount of interest you pay?

Get quotes for closing costs and minimum down payment. The more you can pay down the better, but expect to pay 10 to 20 percent of the purchase price.

Bahamas home closing costs typically include appraisals, recording fees, stamp duty (unless you can qualify under the first home ownership exemption), legal fees and so on.

Ask your loans officer for a complete list of closing costs.
Find out how long it will take the bank to process your application, and what factors might cause delays. A lender may say two weeks, for example, but don't be surprised if there are delays.

If you have found a home in one of the Bahamas islands, provide the required documentation and let the lender know of any new developments during the process.

Compare lenders before you start comparing homes to secure the best possible rates and terms.

Be smart and start the bank process before you look for a home. The most important question is how much the bank will lend you. You are, in fact, looking for a loan pre-approval.

If you find your dream home and you have to wait for a bank to approve your loan, someone may beat you to it. Save yourself the heartache and get approved first.

If you are a first time home buyer, ask your lawyer if you may qualify for stamp tax exemption on a home valued under $500,000. You can save big if you do.

If you already own a home either inside or outside the Bahamas, you will not qualify for this special tax exemption.