10 Key Steps of the Mortgage Process

by Enrique (Henry) Saldana – October 2011

The keys to your new home are yours once your mortgage agreement is signed and closed.

So you’ve found your dream home, made your offer, negotiated the details of the sale, and you’re ready for the next step ... getting your loan.

This is where some people can get a little overwhelmed with the process and only have a general idea what happens throughout the mortgage loan process.

As I have recommended in previous posts, your first step is to go through a mortgage pre-approval process. For the sake of simplicity, here is a list of steps you must take to go through the closing process.

A pre-approval mortgage loan commitment in Mexico, is as good as a final approval. You are approved subject only to the property’s approval and proper documentation presented for closing on the property.

Here are the steps of the process:

1. You contact your mortgage broker/agent.

2. You submit the required documentation as requested by your mortgage broker/agent.

3. A formal loan application and disclosure papers are signed and submitted.

4. You receive your mortgage approval letter.

5. Government permits are requested.

6. An appraisal on the home is ordered. The appraisal will tell the bank what the property is worth. The home must appraise at an amount at least equal to the purchase price.

7. Title search to be performed by the Notary. This shows any current liens on the home so they can be paid in full at the time of closing. The title search also shows the buyer any restrictions and easements to the property.

8. A Trust (Fideicomiso) is prepared by a Trust Bank according to Mexican Law to allow the transfer of the property and give you possession of the same.

9. All parties, Notary, Bank Legal Dept., Developer or Individual Seller’s Attorney and Trust Bank review the final project, or deed, and set a closing date.

10. You and the seller sign all of the final documents at the closing and you deposit the final funds required to close this transaction with the respective parties. The Deed (which transfers title to you) and the Mortgage (which puts a lien on the property until the mortgage is paid in full) are recorded in the Public Registry’s Office of the Municipality (City/County) where you are purchasing your property.

Congratulations, you now own your new home!


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