Getting a mortgage in Mexico Part 2
Getting a mortgage in Mexico has turned out to be an easy process thus far. Basically you leave the work to the loan broker. In my case Thalia Saldaña from SOC Hipotecarios, a recommended broker in my own site on financing in Mexico, has done most of the work. After receiving a quick loan pre-approval notice I had to wait about a week for the bank to get into all my finances before sending me an official letter of approval I can use when looking at a property.
I got a credit from a loan company I have never heard of. I was told by Thalia that she would check all the best options that fit what I am looking for. I wanted a credit with a loan company that would not penalize for early payment since I plan on paying this loan off as fast a possible. The company is called Yave, they are based in Mexico city. I was instantly satisfied with the loan, knowing that there is not much I can do about the interest rate. The important thing to me is to not pay rent anymore, so I this a sacrifice I am willing to make.
I did need the help of a real estate agent even if I am a broker in the area I realized I was not very familiarized with searching certain areas and I simply could not find what I was wanted on my own. We looked at a couple of houses we saw on Facebook but, nothing we really felt was “the house”. Out of nowhere an independent real estate agent sent me options on messenger, his name is Mikhail Davydov. We really liked one house from his options after looking at the house in person. We talked about our options and decided to make an offer. Mikhail got back to us a day after and told us we had an accepted offer.
I went back to Thalia who told me what documents were required. I believe this is the most important part: Documentation. I knew what to look for from being a broker. The house has a deed and the owner is indeed the person who signed the contract. The house is registered in public records with that person as the owner and there is a certificate of no lean on the house. These documents are sent to Thalia who sends them to Yave, the loan company, to proceed assign a public notary to do a formal appraisal.
Based on the appraisal is the amount of money Yave will lend me. Loan companies do not offer 100% loans here in Mexico, keep that in mind. In my case the offer 80/20. I am responsible for paying 20% of the appraised amount regardless of what amount we are agreed on. So, the appraised amount has to be very close to the agreed amount if you already calculated an amount you will pay and want to be on target.
This appraisal thing was hard to understand at first. Understand that you will need to pay out of your own pocket 20% of what you are offering, which should be right about the amount the property will be appraised for officially. Sometimes an appraisal can come higher, that does not matter if you can cover your 20%. If you cannot cover your 20% you can ask the seller to agree the appraised amount so that the loan company covers more of the loan. The problem here is that this might effect the seller with taxes but, most do not care.
So, we are currently waiting on a document needed before sending everything to the loan company to get us in our new house. After getting to know both Mikhail Davydov and his wife Arhely Hurtado I asked them both to be part of the JRE team. They are very good at what they do and I figured we can work together to serve you next.
