The dream of owning a home may seem distant to many, but there are ways to make it come true. One of the biggest problems for Mexicans when buying a new property is the lack of available funds. This makes a cash purchase impossible, but there are other ways to finance a new home.
The main one is mortgage credit. With it, you can make an apartment fund. Whoever chooses this credit must pay an advance, which is usually 10% of the total value of the property, but it can vary depending on the chosen financial institution.
In return, the new tenant will have to pay the financial institution a non-fixed monthly fee. May vary based on bank interest and other fees. Also, there may be a discount if installments are advanced. Which is extremely beneficial. It’s best to look at local guides, like this Mortgage Rates Ontario: The Ultimate Rate Guide, because you get to see exactly what is being provided in the area as rates differ wherever you are!
On the contrary, the increase in installments can occur if the new tenant does not pay the debt on time. When this happens, the bank usually charges an additional interest. As complicated as it may sound, it is one of the ways that financial institutions find ways to pay off debt.
It is very important to remember that when applying for a real estate loan, the presence of a lawyer is necessary, this means that all parties to the contract agree with what was signed. In addition, there are specific companies that facilitate the entire process.
Do you want to know a little more about real estate credit? Then you are in the right place! Read on to find out even more!
What are the requirements to obtain a mortgage?
There are some basic requirements so that Mexicans can finance their properties without major problems. See what they are:
The minimum age to obtain a real estate loan is 25 years old, because at that age the individual already has a sufficient real estate score to know if his history is positive or not. The maximum is usually 45 to 85 years.
Everything will depend on the time of final payment of the installments. If it is a loan of 15 years, the maximum age must be 70 years. Thus, you will finish paying at age 85.
2. A positive score
The score is calculated based on the payment of your monthly debts. If you pay all the bills on time, the final score will be positive. Otherwise, the score will not be enough to acquire a mortgage.
3. Time at current job
The more time you spend on a single job, the more trustworthy the financial institution will be in relation to your credit. This means you have stability and little chance of losing your job while paying off your credit.
Institutions can request the background of those who apply for the loan, to be even more sure of the final release, which can include: school records, criminal past, previous addresses, and previous places of work.
5. Tax returns for recent years
Many banks often ask you to complete personal and business tax returns for the past three years.
6. That you have capital in hand
As mentioned above, it is necessary to have 10% of the total value of the property on hand. This amount will be transferred directly to the financial institution. In return, the institution will finance 90% of the amount, which will be transferred to the current owner of the property.
Now, could you clarify a little more about real estate credit? Please pay close attention to all the requirements before requesting this mode.
- About the Author
Alex Grigoryan is a Professional Home Improvement and Lifestyle Writer. He has been in the industry for over 6 years and has been writing for Chique Home Living since 2019. His work has been featured in prestigious blogs such as Spruce Home, Better Homes & Garden, and more.