We know that making the decision to purchase a property is an important step in anyone’s life, and we are here to help you make that process as smooth and easy as possible.
In this blog, we will explore in detail the different financing options available through Mexican banks for U.S. and Canadian citizens looking to invest in real estate in Mexico. From the basic requirements to the application and approval process, we will guide you through each step to make sure you are well informed and prepared to take this important step in your life.
It is essential to understand that banks in Mexico offer financing subject to specific conditions and requirements. The following are some of the main characteristics:
a) Loans in U.S. dollars.
b) Financing available to U.S. and Canadian citizens.
c) Minimum property value required: USD$250,000.00.
d) Loans up to 65% of the appraised value.
e) Flexible financing terms, from 5 to 20 years.
f) Fixed interest rate, ranging from 7.5% to 9.7%.
g) Minimum FICO score requirement of 700.
h) No prepayment penalties.
i) Interest calculated on outstanding balances.
When acquiring a property through financing, it is essential to follow a series of steps and provide the necessary documentation to ensure a successful and smooth closing. This documentation varies depending on the type of work and income in the country of origin.
These steps and documents are described below:
Salaried employee:
- Last 3 pay stubs.
- Last 3 bank statements.
- Hiring letter signed by the human resources department, including details such as full name, social security number, position, length of contract and salary package.
- W2 form provided by the employer.
- Income tax returns for the last 3 years.
- Credit report obtained through Equifax, Experian or TransUnion.
- Passport.
- Recent utility bill (gas, electric, phone).
- Birth certificate.
- Marriage certificate.
- Description of business activity (if applicable).
Self-employed:
- Bank statements for the last 6 months.
- Tax returns for the last 3 years.
- Form 1040 / 1099 for U.S. citizens or equivalent for Canadian residents.
- Credit report obtained through Equifax, Experian or TransUnion.
- Passport.
- Recent utility bill (gas, electric, phone).
- Birth certificate.
- Marriage certificate.
- Description of business activity (if applicable).
The time it takes for the closing process can vary depending on several factors. Generally, it can take between 30 and 60 days after the bank approves the loan. However, it is important to keep in mind that some details may lengthen this period.
Once the bank has approved your loan, the exciting closing phase formally begins. This process marks the culmination of all the hard work and planning you have done up to this point.
If you have any questions or need additional assistance, please do not hesitate to contact us. We are available to provide you with all the assistance you need at any time. Your satisfaction and peace of mind are our priority, and we are here to make sure your experience is as smooth and satisfying as possible.
