Monday, May 23, 2011

Financing your home in Mexico

When you get ready to do your homework on getting financing for your Mexico home…the good news is that it is now easier than ever. It used to be a cash only business. For most people, this made the possibility a little challenging.

Mortgages In Mexico had a record-breaking year in 2010 as more buyers realize that mortgage financing IS a viable alternative to paying all cash. Why risk 100% of your cash when you can purchase a property in Mexico with only 25% down and leverage the remaining 75%. Of course, good credit is the common denominator. Without good credit, one doesn’t have a position to negotiate with lenders. So the primary consideration that an informed buyer needs to ask themselves “how would I like to leverage my good credit for use in property in Mexico?”

Sellers are looking for a fast closing and a contract with few or no contingencies. And having a great credit score in the US-Canada, in effect, is the same as “cash is king” now. This allows a buyer to take a loan position with a qualified lender, and capitalize on the rapidly increasing property values of the Riviera. Considering you have great credit, the bottom line is to make sure that the area you decide to buy property is the location you do truly want most -either as an investment or as a retirement home. Once you’ve figured that out, “connecting the dots” for a good loan rate from a North American Bank will be easy.

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