What are the steps for getting a home loan for real estate in Mexico? 1. Find an experienced, reputable, and ethical mortgage broker with a successful track record. A knowledgeable broker should be able to answer all of your questions and you should feel comfortable with the level of their expertise. Most brokers will offer the same set of lenders; however, customer service and experience will definitely set them apart. Not all mortgage brokers are created equal. 2. Get pre-qualified. If financing is needed to complete a purchase, it is important to know exactly where you stand. This service should be provided at no charge by your mortgage broker. Save time and get pre-qualified. 3. Make the offer. A broker will provide you and your real estate agent with important clauses to be included in the offer contract that will protect your deposit money and title. If an offer and acceptance has already been completed, it will be important to execute an addendum to the contract to include these clauses. 4. Loan approval and closing. This step requires that the mortgage broker be experienced with Mexican legal documents and the closing process. An inexperienced broker can jeopardize your purchase. 5. Post closing. Just because the transaction is closed and you are in your new home, doesn’t mean the mortgage broker’s service has ended. A conscientious broker will assist in resolving issues that may arise after the close. What are the differences in getting a home loan for Mexico real estate compared to US real estate? The lenders offering financing for Mexico real estate are usually large financial institutions with a global presence. Each lender will have their own set of procedures and documentation requirements. It is important to select a mortgage broker who understands each lender’s idiosyncrasies and is able to orchestrate this complicated process. Often, the quantity of required documentation and forms can be somewhat daunting. Title insurance is available and escrow services should be used on every transaction for your safety. The main differences are; closing costs, closing time frame, and title. 1. On average, closing costs can range from 7-10% of the purchase price. 2. Closing typically will take 45-60 (and sometimes up to 90) days, and is dependent on cooperation of all parties producing required documentation in a timely manner. This includes the completion of the SRE (Secretaria de Relaciones Exteriores) permit which is a precursor to the establishment of the Fideicomiso, a Mexican Bank Trust. 3. The SRE Permit, issued by the Ministry of Foreign Affairs, allows a foreigner of Mexico to have ownership rights to property located in the Restricted Zone, 100 kilometers (62 miles) of the national borders or 50 kilometers (31 miles) of the coastline. Does your company require a minimum down payment? What percentage of the purchase price do you require? Presently, down payments can range from 20-40% and may vary with each lender. We will obtain the most advantageous loan for you considering conditions, qualifications, and your particular needs. What requirements must a borrower fulfill in order to be approved for a loan? The requirements for these types of loans are becoming stricter due to the current condition of the financial institutions and their effect on the U.S. economy. The most significant considerations for the borrower are credit worthiness and financial stability. Usually, the better the credit rating, the more attractive the terms will be. Is interest paid on a loan for Mexico real estate tax-deductible? This question is better directed to a professional tax consultant or CPA with access to current rules and regulations concerning income taxes in your specific country. These loans are U.S. dollar denominated and interest paid may indeed qualify as a tax deduction on your U.S. tax return. What is your origination fee? What is your current rate for a 30 year fixed loan? Loan origination fees vary among mortgage brokers, but are known to range between 2-3%, possibly more. MexQuest Mortgage charges 2% for loan origination. We are able to charge this lower rate because our lenders allow us to perform our own loan processing due to our high level of experience and expertise. All fees should be described in the Good Faith Estimate provided by the mortgage broker. It is important to state that MexQuest only gets paid when the loan closes. We do not charge any upfront fees, Canadian credit report fee excluded. Some mortgage brokers will often disguise this upfront fee as an “Application Fee” and even have you pay via credit card on their website. Loan terms are based on many factors, the most important being the credit rating of the potential borrower. The interest rate on a 30 year fixed-rate loan, with a qualifying credit rating, may be between 8-9%. Lender requirements are ever-changing in this current market and it may be best to contact us for up-to-date rates and terms. How can someone apply for a loan through your company? Applying for a loan through MexQuest Mortgage is easy. Simply visit our website at www.MexQuestMortgage.com, email us at ClientCare@MexQuestMortgage.com, or call us toll free at 1-888-257-9162. We are always available to answer your questions. Upon an early retirement in 2004 from the Information Technology industry in California, James Lambdin relocated to Puerto Vallarta. He began his journey into the Mexican real estate market working as a Sales Associate at one of the top real estate agencies and quickly became acquainted with the real estate process. Realizing a need for real estate financing in Mexico, James returned to the U.S. in 2005 and founded MexQuest Mortgage Corporation. MexQuest is a mortgage brokerage company, located in Sacramento, California, specializing in financing for borrowers in North America purchasing and developing real estate in Mexico. MexQuest is a leader in customer service and is known as a “Golden Rule” company.