FINANCING A HOME IN MEXICO

Financing a home in Mexico generally takes about 45-60 days. There are several steps in the process and we hope that this document can help address the different aspects of doing a bi-national loan program.

Step 1 – Initial Application

Your loan officer will review your loan application, credit report, identification and income documentation to determine the best investor to place your loan with. Upon identification of the lender, your loan officer will ask you to provide any specific documents required by the underwriters of that lender, and upon receipt, will transmit the file to the underwriting department for approval.

Some of these additional documents will typically be (but not limited to):

• Executed Purchase Agreement
• Utility Bill for Primary Residence in the US
• Named Beneficiaries of Fidecomiso Trust (Must be over 18 and provide copies of passports or drivers license)
• Seller’s Information:
• Passport or Birth Certificate of Seller
• Paid Water Bill for Subject Property
• Paid Tax Bill for Subject Property
• Property Deed

Step 2 – Underwriting

Upon receipt of the file, the lender’s underwriter will review the file and approve or ask that certain criteria be met prior to funding the loan. Your loan officer will address this with you. It can take up to 10 business days to get the approval of an underwriter for a loan in Mexico.

Step 3 – Lender’s Disclosures

Once the file has been approved by the lender, they will send you a corrected set of documents relative to the findings of their underwriter. Most of these items will be documents that you have already signed and returned to us. However, it is necessary for each investor to have signed original copies of their specific disclosures due to the complexities and legalities of a bi-national loan.

At this time they will include copies of the necessary documents to be completed and signed to setup your Fidecomiso Trust. For this, you will need to list 4 beneficiaries (over the age of 18) and provide copies of either their passports or drivers licenses.

You can also expect that the investing bank will ask that you either set up an escrow account or debit account so they can handle any pre-paid expenses for your loan. The bank will estimate the amount that will need to be deposited based on the specific locality and parameters of the Subject Property

Pre-paid items will typically consist of:

• Appraisal Fee (this is based on sq. meters of the home)
• Trust setup fee
• Notario fee (a notario is a representative of the Mexican government that oversees all aspects of real estate transactions)

Step 4 – Lender’s Due Diligence and Final Approval

Upon receipt of the signed disclosures and escrow or debit account deposit, the lender will order the appraisal and send the file for review with the Mexican partner bank. At this time there may be requests for specific information in regards to the property such as construction plans, public registry address, where/if the property is held in a trust currently and others miscellaneous items. Several of these requests can be met by the seller or the local government in Mexico and we will advise you as to how we can satisfy the requests. This is the longest part of the process as it is at this time that the file will be in review by the notario for the specific municipality of the Subject Property.

Step 5 – Closing

Each lender has different criteria as to how closing will need to take place. Your loan officer will advise you of your options based on the requirements of the lender. Congratulations!

Mexico

Standards