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Financing

There are any number of Banks and Mortgage Brokerage Companies that offer mortgage financing for the purpose of purchasing, building or refinancing your Mexican home. Since closing procedures, laws and fees are different in Mexico than in the United States or Canada, Timothy Real Estate Group agents will work together with your lender or mortgage broker through the entire process to make sure purchasing your Mexican home is safe, easy and worry-free.

Lenders

After Timothy Real Estate Group helps you find the perfect property for your needs you may need financing. With that in mind, we work with a variety of mortgage providers that will customize a financing option that is perfect for your purchase. For more information on the options offered by these providers, please contact a Timothy Real Estate Group professional.

Documentation

Similar to financing in the United States, financing your home in Mexico requires your tax returns, pay stubs and/or W-2 forms in order to verify income. Alternative documentation programs are also available that allow the use of bank statement deposits for verifying income. Or, you can simply state income without providing verification. Two months of statements on all bank accounts are usually required. We suggest you check with your mortgage broker or lending institution for the latest requirements.

Start

You begin by pre-qualifying. This can be done quickly and easily in one simple conversation with a lender. Once it is determined that you qualify for a loan, an application will be completed. At this time your credit will be verified and your lender will notify you of what specific documentation will be required.

Time

The initial credit approval process usually takes just 3–7 days from the time you have provided the necessary documentation. Next the lender orders an appraisal. This takes roughly 2 to 4 weeks. When the appraisal has been completed and all conditions of the loan satisfied, the closing process begins. This process takes anywhere from 60–90 days to close. Once the municipal tax appraisal and required permits have been received, you can begin the process of drafting your closing documentation, at which time you will be ready to sign and close your loan.

Tax Deductions

Per IRS regulation, interest paid on primary and secondary residences up to an aggregate one million dollars in loan amount is tax deductible. The IRS regulation does not specify that the home must be located in the United States, and thus it is the opinion of most tax consultants that interest paid on a home loan on Mexican property is in fact deductible. Points paid in relation to obtaining a loan for second homes are only deductible over the life of the loan. (Please consult your tax advisor for applicability to your own specific situation.)