Learn more with a mortgage pro: Bob Phelps From Global Mortgage answers interesting questions
Los Cabos Agent it’s someone you can trust and Nick Fong the founder of Los Cabos Agent is excited to help you out make your dreams of having a home or land in Mexico! Within his concerns to give you the best assistance you can get, he recently, got lucky enough to have the opportunity to chat with Bob Phelps from Global Mortgage. This is a cross-border lending firm. Keep reading throughout this post and learn all you have to know about loans and mortgages in Mexico.
Global Mortgage in Los Cabos San Lucas
As a cross-border lending firm, originally based in the U.S. Global Mortgage and the Loan expert Robert Phelps answered some of our questions in this very instructive conversation. Find here relevant information for you as a buyer. Going from the rates and requirements to the pre-qualifying and payment processes we covered all! We have this and more waiting for you to learn and be ready on your next purchase of a piece of heaven in Mexico.
What’s Global Mortgage all about?
First of all, know that it’s a crossed border company. As such it follows all the rules and regulations in the subject of mortgage the United States and of course in Mexico. The standard that this company manages is one that abides all the laws and rules in Mexico, so you don’t face any problem when owning property there. They’re listed as a financial institution in Mexico, not an easy to do, but an achievement for the sake of the clients.
Types of loans in Mexico
Knowing the needs of the costumers, they’ve made it very simple. First, you have the 15-year fixed loan, for new and existing properties. The other option is the cash-out refinancing. With people that already own a property in Mexico this cash-out option works when you’re looking to remodel your already owned property. Also as the value of your home increases over time and you might be looking to move to a bigger house, this works too. They definitely can work out a cash-out refund in these homes.
Parameters and guidelines
They manage very strict guidelines but competitive entrance rates for the loan. The guidelines are not only set for US standards but also for Mexico standards. Hence, they try to make it almost the same as if you’re trying to take out a loan in the US. They’ll even have the tabulation showing the differences between Mexico’s and the US guidelines. This way every client can see how it works and better yet how they work! No doubts about their services.
Acceptance for a loan in Global Mortgage
It all starts with a pre-qualifying process, the same as in the US. More specifically, seven pieces of information will be asked from you. From here, they’ll be able to make a projection of your credit and then they’ll follow with the pre-qualifying process. To prequalify they’ll take a glance at your FICO score and see your ability to repay the loan. That’s all there is, they’ve made it simple as that.
Documents needed for a loan
The documents required to get a loan from Global Mortgage are the same as in the US, except for some documents that might require a valid passport. As for the documents, the company asks for, just goes for the report of tax returns and stability in your job. For this, they’ll be looking for verification employment. Nothing more than just the regular things to look at when trying to get any normal loan option!
Prepayment penalties are the extra fees charged when you try to closure a loan by paying everything owed before the established time. As for Global Mortgage, you’ll find zero prepayment penalties since day one! Even if you decide to pay the loan a few months later, there’ll be no penalties or extra charge for the services. Talk about giving the client the advantage and commodities they deserve!
How long does it take to close a loan process?
It depends, in Mexico, it can go as short as 60 days but the average is around 200 days for the process to close before the loan is given.
Closing costs are the fees that take place due to taxes and several government paperwork process expenses. In Mexico, some of them can get really high on costs. Global Mortgage tries to keep it as low as possible, being only two to three percent of the loan they lend. They’re not going to let you walk away from your dream house over a few bucks! The first year is usually the most expensive, but it only gets better over time. So they’ll try to give the clients the ability to pay every fee needed to purchase their perfect home.
The minimum right now is a hundred thousand dollars in a loan in Mexico. The maximum amount that is usually given goes as high as two million dollars! Anything above that can lend too, no problem. They’ll just go over the specific case to check a bit deeper into the pre-qualifying process.
Debt to income ratio
First of all, what is it? This is a percentage that you can get taking into account your incomes, and all of your debts, with a specific formula giving a percentage. This percentage can be translated as the ability to repay the loan. As you can imagine, the lower the percentage, the better! Global Mortgage will lend summed to this ratio a 35% with some exceptions, having to look at each specific case for this.
The future of loans in Mexico
Global Mortgage has been in Mexico for two years now. But they surely have a 5, 10 and 15-year plan for the company besides the yearly goals. And 3 years from now, they expect to be covering all of Mexico!
We thank Bob for taking time out of his schedule to answer all these questions for us. If you have any questions for Bob, give him a call at 1 (866) 509-4657 or you can send him an email at firstname.lastname@example.org.
And don’t hesitate to reach out to Nick Fong, someone you can trust, with your real estate-related questions as well. We look forward to hearing from you!
Los Cabos real estate
Many Americans, Canadians, and people from other countries choose to make Los Cabos, Mexico, their home or vacation home. So, discover how to purchase your dream home in Los Cabos, Mexico by inquiring with the top Real Estate Broker in Los Cabos: Nick Fong, who’s been featured many times on HGTV’s Beachfront Bargain Hunt.
See Nick Fong in action on his Los Cabos Agent YouTube Channel. His videos are posted on the Los Cabos Agent VLOG, where you can read a short, yet in-depth post. Below is an example of one of Nick Fong’s Los Cabos Agent videos:
Visit Los Cabos soon
Thank you for reading Learn more with a Global Mortgage pro, written by Greg Hixon of RE/MEX Image. Be sure to read other posts about Los Cabos on the Los Cabos Agent blog. There, learn about the many wonderful aspects of Los Cabos, Mexico, from blog posts like this.