Playa Del Carmen Villa With A Mexico Mortgage Pros And Cons
For many people, owning a comfortable property near the beachfront
, like a Playa del Carmen villa, near the beachfront is a dream come true. The good news is that this dream is more accessible through mortgages available directly from banks in Mexico. A number of villa developments in Playa del Carmen have made arrangements to make this process more direct and easy. In addition to the normal pros and cons of a mortgage, the following are some pros and cons specific to getting mortgage directly in Mexico.
Pros
1. Financing available directly in Mexico
The fact that you as a buyer can finance your property directly in Mexico means that you don't have to tie up home equity on a property you own in your home country. The villa itself will be used as the "collateral" for your mortgage, and your other property will not be involved in the process (except as demonstration to qualify for the credit requirements.)
2. International Banks Available
Besides the fact that most banks in Mexico are now owned by foreign companies such as Scotiabank from Canada, banking in Mexico has modernized drastically, offering high security for transactions through these institutions.
3. Pre-Arranged Qualification
A number of the villas that are promoting mortgage purchases are usually pre-qualified, meaning that the process of reviewing and approving the property is already done. This saves the frustration of spending time in the process only to realize that the property does not meet regulations, which are still significantly tighter in Mexico than in the U.S. In some cases, much of the process is pre-arranged, meaning that the documents are delivered to a representative with the developer, who carries out the mortgage qualification process.
4. Begin enjoyment of your
Playa del Carmen villa with only 30%
As is always a benefit of buying through a mortgage, you can begin enjoyment of your new villa with the down payment and credit approval. One top development is selling villas just over $200,000 USD, and requires a down payment of 60%.
Cons
1. Higher down payment and interest
While it is still a benefit to begin enjoying your property with a smaller initial payment, higher down payments are a part of the stricter regulations in Mexico. Since interest rates in the U.S. are rock bottom (in attempt to revitalize the housing market) Mexico's rates are slightly higher.
2. Longer paperwork and approval processes
Even with the pre-qualification of your villa, the process will probably be more complicated that what you're used to. If the developer is managing the application process, it will just be a question of waiting longer.
3. Higher FICO scores required
In addition to higher down payments and tighter property restrictions, there are also higher credit score requirements.
In the end, the advantage of having home equity free on other properties usually outweighs the "cons" for most buyers, but in consideration of this list, you can choose for yourself it if it's appropriate for you to buy your villa through a mortgage in Mexico.
TOPMexicoRealEstate.com; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely
by: Thomas Lloyd
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