8 May, 2024

“I’m such a profound believer that timing is everything; I would tattoo that on my arm.”

Drew Barrymore

That statement is true in life as it is in financing in Mexico. From our experience, the number one mistake made by foreigners that want or need to borrow money to purchase real estate in Mexico is that they wait until the very last minute to find the necessary financing. Take the following five steps to avoid making this mistake.

First, realistically determine what your budget is. We all want to purchase a beach front palace, but can we afford it? Are we assuming too much debt that will eventually create chaos in our financing?

Secondly, now that you know your budget, do you have the down payment necessary for the purchase? Most lenders in Mexico require a minimum of 30% of the purchase price or value of the property as they will only finance 70%.

Thirdly, get preapproved. Don’t start shopping unless you are provided with a letter of preapproval stipulating the amount of the loan that you are eligible for. Mexloans can get you preapproved within 48 hours of receiving your application online and all the required documentation.

Fourth Step, tell your realtor that you will need financing? Your realtor needs to include this as a condition in the offer to purchase. Mention to the seller that you have been preapproved and that the financing will be a formality. The realtor and the seller will adjust their expectation for the delay required to close/notarize the transaction.

Fifth step, anticipate at least 60 days for the closing/notarization to occur. Remember that as a foreigner there are numerous formalities that need to be accomplished to purchase real estate in Mexico.

In conclusion, timing is indeed everything, especially when it comes to securing financing for real estate in Mexico as a non-resident. By following these five essential steps—determining your budget, securing a down payment, getting preapproved, communicating your financing needs with your realtor, and allowing ample time for closing—you can ensure a smooth and stress-free process. At Mexloans, we are dedicated to helping you navigate this journey with ease and confidence. With our expertise and quick preapproval process, you can focus on finding your dream property without the worry of last-minute financing issues. Let us assist you in making your real estate dreams in Mexico a reality.