Are you planning on purchasing a property in Mexico?

We´ve compiled the following information to educate and guide you through obtaining a mortgage and purchasing property in Mexico.

What is a mortgage broker?

  • A mortgage broker offers various different mortgage options, usually from various different lending sources.
  • A mortgage broker will explain the loan conditions and processes and will gather your loan package and qualify you for bank approval.
  • CBI goes one step further as we work with our clients throughout the entire process of Escrow, the trust, due diligence, etc. 

Why hire a mortgage broker?

  • It is not possible to go to a bank in the US or Canada and request a mortgage for a property in Mexico.
  • A mortgage broker will provide you with various options. If you were to work with a bank, the bank would only provide you their options, they would not tell you if the competition has lower closing costs, or a better interest rate.  A mortgage broker can compare and contrast. 
  • Many of the lenders do not have representatives who can work with individual clients.  You need to work with a mortgage broker. 
  • Working directly with a bank in Mexico may provide its challenges, with language, business culture, response-times.
  • While most mortgage brokers and banks do NOT provide this service, CBI works will our clients from the very beginning of the transaction through the closing.  We do not only get you approval and then turn your file over to someone new, rather, we do all aspects of the transaction to provide a seamless experience. 

Why choose CBI?

  • We are well-established.  We have been in the industry since 2011.
  • We have been leaders in the industry since we opened. During this time, we have worked with several different lenders to develop mortgage products. Many of these products are now the industry-standard.
  • Our team is bilingual and multicultural.
  • We seamlessly blend together what is expected in the U.S and Canada, and what is available in Mexico.
  • We are your One-Stop-Shop. We are with our clients from the very beginning of the process, from explaining the loan conditions and processes, through approval, the sales contract, opening the Escrow account and the corresponding transfers, the appraisal, property due diligence, deed signing and closing. CBI handles all the aspects of the transaction. 

What do I need to begin the mortgage process?

  • Contact us.
  • Use our prequalification form.
  • With your CBI representative, review the mortgage conditions and qualification requirements.
  • You can begin the mortgage process prior to shopping for a property. 
  • If you have already identified the property you want to purchase, we can start the approval process and try to move quickly through the processes.

What documentation is required?

Please contact your CBI representative for most current information, but in most cases, you will need to provide:

  • Passport, driver´s license, birth certificate, utility bill.
  • Paystubs.
  • Tax returns.
  • Bank statements.
  • Asset statements.

If I purchase with cash, do I need a closing coordinator?

  • Please review our information about Cash Purchases.
  • When purchasing real estate in Mexico, the process of deeding a property can be overwhelming, which is why most buyers use a real estate deed coordinator to facilitate the process.
  • At CBI, our bilingual representatives will provide all deed coordination services: escrow, trust, property due diligence, etc.

What is a prequalification?

There are three types of prequalification:

  • Digital Prequalification:

You can submit your information through the prequalification page or have a phone call with your CBI loan officer.  Once the information is reviewed, you will be provided with an estimate of the loan amount, interest rates, monthly payments, etc. This takes us approximately 1 business day.

  • Broker Prequalification:

Your CBI loan officer will review through your income documentation and credit report, and provide with an estimate of the loan amount, interest rates, monthly payments, etc. This takes us approximately 2 business days.

  • Bank Approval:

The lender has reviewed your complete loan package and confirms the approval and conditions (loan amount, interest rate, monthly payment, etc.). If you are in a sales contract, you are ready to begin the closing process. We recommend the Bank Approval for clients who are confident they are going to purchase a property. 

What is a trust?

  • México has a Restricted Zone, which is 50 km (31 miles) from the coast and 100 km (62 miles) from the border. Within the restricted zone, non-Mexicans cannot buy properties directly, but are required to purchase through a bank trust. The constitution of Mexico was implemented in 1917, the restricted zone was used to protect against military attacks.
  • As you can imagine, making an amendment to the constitution is quite challenging.  So, there was an alternative proposed. After 1970, the Bank Trust system was implemented.
  • A permit is issued from the Ministry of Foreign Relations (SRE, for its acronym in Spanish) that allows the constitution of the individual bank trust. The trust grants the beneficiary (the buyer) to use, modify, borrow, rent or sell the property at their discretion. This is not a lease and your property is not considered an asset of the bank trust.
  • The trust also provides estate planning. The buyer is the beneficiary of the trust, and there would be a substitute beneficiary established.  This is the person who inherits the property in the event of the beneficiary’s death. The substitute beneficiary can be modified, and the trust would replace a will in your home country.

What does a notary do?

  • When we hear the word “notary”, we automatically think of a Notary Public in the US or Canada.  However, a Notary in Mexico is a highly prestigious position, appointed by the governor after a serious of rigorous tests that takes years to complete.  
  • The notary used for your real estate transaction will be one of the most reputable in the region. If purchasing with a mortgage, the Notary must be then approved by the lender, giving us the best of the best.
  • While CBI coordinates many of the functions of the notary in most transactions, the notary is ultimately the entity that is responsible for the legality and recording of the transaction.

Title insurance

Title insurance is common and sometimes even required in parts of the US and Canada. In Mexico, only some of our lenders require title insurance. Title insurance covers third-party claims on a property that were not discovered in the initial title search and arise after a real estate closing.

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Acquiring a property in Mexico is within your reach!

Use our pre-qualify tool and take the first step to acquiring your dream home.

We are expert mortgage brokers

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