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The Loan Process: Step by Step

At Grupo Gap we have worked to help many people achieve their goals with equity loan financing. The process from start to finish for any equity loan application consists of several steps, as outlined below. With our experience and expertise, we help borrowers and lenders navigate this process to encourage a fair and balanced transaction.

The Loan Request

  • A prospective borrower comes to Grupo Gap through our Gap Equity Loans website, or social media accounts, word of mouth (often a friend who is a satisfied borrower), or our referral program.
  • The prospect fills out a loan request online, or contacts us with some questions before filling out the loan request, or we get the same information through a referral agent.
  • We get in touch with the prospect, assess their needs, and help them get acquainted with the loan application process. We ask any questions we may need clarification on.
  • We begin a preliminary evaluation, with the basic items such as the land survey (plano catastro), and any other pertinent details to assess the feasibility of a loan.
  • We arrange a site visit with the prospective borrower, to see the property, meet with the prospective borrower and discuss, and work with the borrower to complete the full loan application form with details needed to close the loan.

The Investor Alert

  • We create an Investor Alert with the loan information and photos taken during the site visit. We use this to introduce the lending opportunity to our exclusive shortlist of lenders and prospective lenders.
  • We suggest interest rates and terms based on what the borrower would agree to, and what we believe would be attractive to the lender given the market conditions. Final rates and terms are always subject to negotiation between lender and borrower.
  • When a lender expresses interest in the loan, we provide them with the information we have gathered during our evaluation, and answer any questions or doubts the lender may have at that point.

Term Sheet and Closing the Deal

  • Once the lender agrees to do the loan, and rates and terms are agreed to on both sides, we will produce a Term Sheet for both sides to review.
  • We arrange the necessary documents for closing the loan, with assistance from the respective attorneys. The notary public registering the loan will perform their due diligence as required by law, but we make their job easy by having done much of the legwork already.
  • The Term Sheet will be revised as needed, any final issues to be cleared up will be cleared up, and a time and place is arranged for formalizing the loan and making disbursements.
  • At the closing, the parties sign and the lender makes disbursements as detailed on the final Term Sheet. The official terms of the loan are registered and signed the notary public’s protocol book in accordance with Costa Rican law. The official loan paperwork (escritura) is then submitted to the National Registry for the loan to be registered on the borrower’s title.

Just the Beginning?

This is only the beginning stage of any loan, as a loan is an ongoing relationship between a lender and a borrower. Once the loan begins, the borrower makes their payments to the lender according to the terms of the loan.

At Grupo Gap, we often work closely with both lender and borrower, and we are available to assist during the loan. With most loans, we perform a periodic due diligence check (as described in the Term Sheet) to make sure the conditions haven’t significantly changed for the property.

For more information about obtaining an equity loan in Costa Rica, contact us now by using the contact form.

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