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September 11, 2021
If you are wondering what to do if I want to buy a house in Mexico, you are in the right place because in MayaOcean Real State we want to provide you with advice regarding this issue and we have prepared an article with all the information.
We will present 3 fundamental tips that you should consider for the purchase of a house in Mexico, you will also be able to access a list with the documentation for this procedure and, finally, if you are a foreigner, you will find what you must do to buy a home in this country.
We invite you to read until the end, and if you have any related questions or want advice contact us and we will gladly attend to your request .
The decision to buy a house in Mexico can be one of the best you will make in your life, so that it is that way it is important that you take into account these tips that we will share with you:
The first thing you need to do is a thorough investigation into the status of the property,for this request the title of this, that way you will ensure that it is free of debts, or that it has commitments in another credit.
You can do this by going to the Public Registry of Property, where you will request a document that will indicate what the situation of the property is before this institution.
If it is a new property, in the same way you should investigate everything about it, it is best to have experts to help you with this phase, and that, in case of being a used property, can tell you if it will require modifications and what they would be.
To choose a mortgage loan, it is important to know the value of the home you want to buy in Mexico.
We advise you to evaluate the differences between an increasing rate mortgage loan and a fixed rate one. Once you know the characteristics of each type of rate, choose the one that suits your needs and financial reality.
Keep in mind that the cost of a loan is not only the interest, you must calculate the expenses as the Total Annual Cost which is an annual percentage indicator in which extra costs are added.
If you are wondering what to do if I want to buy a house in Mexico, do not forget to calculate the down payment, among other initial expenses. The best thing is that you allocate a large part of savings for the down payment,because that will make the financing less and, therefore, the monthly payments.
Now, the down payment is not the only expense or down payment you will have. You must add the notarial expenses, the appraisal, among others.
In some states or municipalities in Mexico, a commercial appraisal is not necessary, and as for the bank appraisal, it will serve for the authorization of the credit you have requested.
As for the down payment, never give money as a down payment or deposit if there is no contract that formalizes such a transaction.
As extra advice do not forget that you need a Notary to write a deed, which will serve to state that you are the owner of the house you are buying,and that you are mortgaging it in favor of the entity that granted you the credit.
The Notary will also verify that the person making the sale is the owner and that the property is duly regularized.
Now that you know the 3 fundamental tips that you should keep in mind when buying a house in Mexico, we want you to have an idea of what documentation you need.
First of all, there are different ways to acquire a new house or one that has already had an owner, and you can always use the services we offer you at MayaOcean Real State .
If you have professional help, this whole process will be easier for you, and you will make sure that all the documentation is in order before closing the deal and making the purchase.
Here is the documentation that is required:
This letter must be presented before the Notary, it is necessary in case of having a mortgage loan with a bank.
It is also necessary if you access the services of FOVISSSTE or INFONAVIT. The letter of authorization of the credit is a guarantee for who is making the sale of the house, because it is the way he has to verify that you do have the resources for the purchase.
It must be a valid appraisal, as it guarantees the price of the property. Remember that houses are increasing in value. Therefore, this document guarantees that the agreed price will be kept during the transaction.
So, with the current appraisal of the property, a price is established and also the amount of bank credit to which you will access.
This is a document that you obtain in the Public Registry of Property, and your Notary can take care of the procedure.
We have already mentioned this certificate among the three fundamental tips that we present to you.
These vouchers must cover the last 5 years, with which it is shown that the property does not have debts related to the payment of water and property.
It is a very important document in the case of houses that are not new.
The Deed or Title of the property is the document that accredits and endorses the ownership of the house, which legally proves that you are the owner.
When the Deed is signed, the Notary must be present,to enter it into the Public Registry of Property, that way it will appear with your name as the new owner.
It can be said that this is the indispensable documentation to buy a house in Mexico, in addition, you must have your official identification, just like the seller.
On the other hand, if the new deed will be acquired through joint property, or if it was acquired in that way and you are going to buy it, then you must have the identification of the spouses.
Mexico has become a very attractive country for foreigners, who not only show interest in visiting, but also in investing in the real estate sector.
That is why we wanted to introduce you to what to do if you want to buy a house in Mexico as a foreigner.
Keep in mind that having another nationality is not an obstacle to buying a house in Mexico, but you should consider the necessary permits and requirements for it.
A restricted zone is one that is within a 100-kilometer strip along the land borders, and also those that are within a 50-kilometer strip along the beaches.
This is important to know, because if the house is outside the restricted zone, you only have to agree with the Mexican government so that you are considered as national in relation to the purchase of the house.
In case the house is in a restricted area, you must make the purchase through a bank trust, or through a fiduciary institution, and it will be such an institution that will have the title deed, and you will have the right to the house for a maximum of 50 years.
For the purchase you need a prior permit that, as a foreign person, is granted by the Mexican government.
The request for this permit is made at the Ministry of Foreign Affairs (SER), which is in the General Directorate of Legal Affairs in Mexico.
If you cannot make the request personally, you can do so through a legal representative whom you will enable with a power of attorney.
As a foreigner you can opt for a financing plan for the purchase of a house in Mexico. With a mortgage loan for foreigners you can count on benefits such as rates, insurance and fixed monthly payments.
If you work within the national territory and you are entitled to FOVISSSTE or INFONAVIT you can access a co-financing. And if you want a mortgage loan, you only have to meet the requirements demanded by the entity.
In general, although they may vary according to the entity, the requirements are:
Finally, as an answer to what to do if I want to buy a house in Mexico as a foreigner, you should consider the issue of taxes. If the house is outside the restricted zone,the procedure will not have a special cost and you will pay the same taxes and expenses as a Mexican.
If the house is in a restricted area, it will have additional expenses corresponding to the constitution of the trust, and these expenses vary according to the rate handled by the fiduciary institution for its intervention.
Such expenses are related to the payment of the fees for the permission granted by the Ministry of Foreign Affairs for the constitution of the trust, and with the commission for opening and validity.