Mortgage Financing Options

Financing Options
Every year, an average of seven million North Americans travel to Mexico. Of that number, statistics indicate that as many as 1.5 million Americans and Canadians have bought second homes or vacation properties in Mexico, with the majority investing in beach resort destinations such as Puerto Vallarta, Cabo San Lucas and Cancun or popular expat enclaves like Lake Chapala and San Miguel de Allende.

Up until a few years ago, foreign nationals wishing to buy vacation or retirement property in Mexico had to have sufficient resources to buy Mexican real estate without need for financing.

Unfortunately, not everyone can afford to pay cash for property in Mexico. So now that you've found your dream home - how are you going to pay for it? Fortunately, the days of the all cash purchase are finally over.

Today, with a myriad of financing options available through leading residential mortgage lenders and their authorized agents, buying your dream home in paradise is not only possible... it's easier than you might think!

Here are some good companies to contact:

MEXLend, Inc. www.mexlend.com - is a Mexican mortgage brokerage based in Puerto Vallarta that currently represents 8 different lenders offering 75 different loan options for buyers looking to purchase vacation or investment property throughout Mexico.
The perfect option for any Foreign or Mexican National living and working in Mexico, MEXLend is pleased to announce that Peso Loans are now available for those individuals who for the most part have officially expatriated to Mexico.

Mortgages in Mexico - www.mortgagesinmexico.com
Mexquestmortgage - www.Mexquestmortgage.com
First Mexico Mortgage - www.firstmexicomortgage.com

Scoring your Credit - How's your FICO?

In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:

  • Credit History - How long have you had credit?
  • Payment History - Do you pay your bills on time?
  • Credit Card Balances - How much do you owe on how many accounts?
  • Credit Inquiries - How many times have you had your credit checked?

Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.


 


Sam Skidmore's Puerto Vallarta Luxury Properties • From the US/Canada dial 1-213-787-5892
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