The Benefits of Financing
Other
In the past, if you wanted to purchase a home in Mexico, the only way to achieve this was to pay all cash. This, of course, limited your purchase price to the amount you could afford to pay, thereby limiting your purchase options. Additionally, this did not insure transfer of Title, whereby you would actually be the legal owner of the home.
Close to 3 years ago, Finance North America pioneered the first loan for U.S. and Canadian citizens purchasing in Mexico. Although still in its infancy, financing in Mexico has had an important impact on the ability for more people to qualify for a purchase and buying a higher priced property with a minimum of 20% down.
Listed below are a few other significant benefits to consider when choosing to finance your Mexican Dream Home:
Clear Title
Enjoying the property and all its amenities is one of the main reasons people purchase homes in Mexico. Knowing that you have been transferred clear Title to the property is something you expect but may not have occurred. When you finance your property, the lender requires that the Title is free & clear before they will fund your loan and verify transfer of Title to the Fideicomiso, thus insuring your ownership.
Financial Leverage & Mitigate Risk
Financing allows you to substantially increase your purchasing power, enabling you to purchase the home that you desire. With a minimum of 20% down, your ability to buy the home that may once have been out of reach is now within reach. More importantly, you mitigate your risk by only putting a minimum down instead of the whole purchase price.
Alleviate Refinance Closing Costs
Many buyers, who decide to pay cash initially and take transfer of the Title, wind up refinancing at some point to recover their purchase funds and minimize their exposure. Unfortunately, the closing costs for a refinance are considerably close to the closing costs when they purchased the home. Essentially, it is equivalent to paying twice for the closing costs which is an expensive oversight. Careful consideration should be given to financing for the initial acquisition so as to avoid future costs for a cash-out refinance.
Do it While You Can
In light of current global market conditions and credit availability, now is a good time to finance your purchase or do a cash-out refinance while the conditions are still favorable. In other words, do it while you can.
Although you may have the ability to pay all cash for your Dream Home in Mexico, financing still is a better option overall. Let the professional and experienced staff at Finance North America leverage your purchasing power to buy the home that you want.
