A growing number of Americans and Canadians buying real estate in Mexico are interested in doing so through financing; the good news is that buying Cancun property by means of a mortgage in Mexico is a viable possibility.
While it is definitely a possibility to buy a condo or home in Cancun by means of mortgaging your property back home, there are some real advantages to using a Mexico mortgage, such as;
- Your valuable home equity is left in tact, so it can serve other purposes.
- The loan is leveraged against the property you are buying, meaning that all risks are isolated to this particular ownership; i. e. a risk in Mexico won't affect your ownership back home, and vice versa.
- Easy monthly payment packages including property insurance make management easier.
- A variety of plans are available, including periods of 15,20,25 and 30 years, as well as fixed rate or variable rate
- Payments to principal are easy and accepted without penalty; i. e. you can cut down on the amortization period and save large amounts of cash by paying less interest.
There are, however, some disadvantages to be considered:
- Interest rates are slightly higher.
- Credit rating score requirements are higher.
- Property qualification requirements are stricter.
- The process is longer and more documentation is required.
The last point can be especially frustrating for buyers used to the system in the U. S. or Canada. However, entering the buying process prepared for these differences, buyers can complete this process, and use a Mexico mortgage as a viable tool to acquire a property in Cancun.
As a buyer considering using a mortgage in Mexico should take the following steps to ensure that the process goes as smoothly as possible.
- Receive a pre-qualification for your budgeted amount from the start. A bank officer will be able to help you analyze which amount you can comfortably apply for to avoid a rejected application. This will also clear the way, so once you find the right property, the closing will not be complicated by the mortgage process.
- Tell your agent that you are buying on a mortgage; in addition to suggesting banks and mortgage experts to help you, they present properties to you that are either pre-approved for mortgages, or that their experience tells them will likely be approved without complication.
- They can also advise you on additional tax implications, if there are any, and what strategies can be used to minimize or avoid extra costs.
If you are considering buying in Cancun, you can consider using a mortgage as a real, viable option for acquiring a property.
TOPMexicoRealEstate.com; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely