Jazzing It Up
November 2010

Mortgages in Mexico
by Enrique (Henry) Saldana

With the upcoming Jazz Festival just around the corner in Playa del Carmen, and my being a former musician, I thought I could also make a commitment to Jazz it Up!!!

Yes, I will Jazz Up the mortgage business process in our area. I will do whatever I can to help those who choose to invest in the area to acquire a mortgage for the purchase of their dream home in Paradise.

But this requires a process ...

How many times have you heard people excitedly talk about their new condo purchase?  Or, how many times have you heard them speak about the need for cash and how they are just going to go to a Mortgage Broker or a Mortgage Consultant and get it? And then later you meet them again and hear them dwell on their failed business venture, or the promised mortgage that never materialized. And why is that?

Well some might call it good luck, others Irish Luck, "the luck of the draw," or simply, pure luck. But is there such luck involved in acquiring a mortgage?

Someone once defined Luck as "The point where Preparation intersects with Opportunity."  Therefore, if there is no Preparation, when Opportunity presents itself, there in fact is NO Luck. This is an axiom we could assume to be true.

But how do you prepare for the right opportunity?  Well, one practical way of preparing for the opportunities that will present themselves is through proper planning.

So how do you prepare for a mortgage?  Well, you do it through Mortgage Planning.

And what is Mortgage Planning?

Mortgage Planning means preparing yourself for a smooth loan mortgage process. And how do you do that?

You get yourself Pre-qualified, or Pre-approved for a Mortgage in Mexico.

So here is how we will Jazz Up the process for you.

In order for you to get Pre-qualified or Pre-approved for a mortgage, you must understand the following:

Getting Pre-qualified:
Getting qualified before you apply for a loan can help you understand how much you can borrow.
You can be Pre-qualified over the phone or on the Internet in a few minutes.
Pre-qualification is a quick process.
A Pre-qualification process is a quick process that simply requires you to mention to your mortgage broker what your income, assets and liabilities are. It is highly recommended that you be Pre-qualified before you start looking for a home.
Your Pre-qualification will be subject to verification of the income, and assets and liabilities information you have provided.

Getting Pre-approved:
Will allow you to know your maximum affordable home value, and save you from previewing properties outside of your price range.
You must provide physical evidence of your income, credit score, assets and liabilities to your mortgage broker.
It puts you in a stronger negotiating position with the seller, because the seller will know your loan is Pre-approved.
It will help you close quickly, since your loan will be Pre-approved.

Choosing a loan program that best fits your situation:
Think about how long you plan to keep the loan.
If you plan to sell your home in a few years, you may want to consider an adjustable rate or balloon loan.
If you plan to keep your home for a longer time, you may want to consider a fixed rate loan.
Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible.
Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 usd loan is $1,500 USD.
Compare the different loan programs.
Consult an experienced loan officer who can help you find a loan program that best fits your short- and long-term plans.

Obtaining a Final Loan Approval:
Once your loan application has been received, start the loan approval process immediately.

This involves verifying your:
Credit history
Employment history
Assets including your bank accounts, stocks, mutual fund and retirement accounts
Property value (appraisal).

To improve your chances of getting a loan approval:
Fill out all loan forms and applications completely.
Respond promptly to any requests for additional documents.
Do not make any major purchases. Do not buy a car, furniture or another house until your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
If you cannot be present when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Closing the Loan:
After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public.

Be prepared to:
Pay your closing costs as required by the bank.
Personal checks are NOT acceptable.
Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
Sign the loan documents. The notary will require that you have your picture ID with you (normally a copy of your passport). Some lenders may also require to see some other form of ID.

Provided that the proper process is followed, your loan will normally close in a timely manner. You would have Jazzed Up your mortgage process for a Mortgage Loan in Mexico.

This article is provided by Enrique (Henry) Saldana, Mexico Realty Solutions
Cel: (984) 116-8528; Off: (984) 147-0100, moneylendingbus@hotmail.com; www.mexicorealtysolutions.com