Home loan mortgage process in Mexico

1. Determine Your Budget & Eligibility

• Check your credit score (Mexican credit history is required; foreigners may need to establish credit locally).
• Calculate down payment (typically 10%–30% of property value).
• Assess debt-to-income ratio (banks usually require monthly payments ≤ 30%–35% of income).

2. Choose the Right Mortgage Type

• INFONAVIT (for salaried workers in Mexico, government-backed).
• FOVISSSTE (for government employees).
• Bank Mortgage (from private banks like BBVA, Banamex, Santander—higher rates but more flexible).
• Foreigner Loans (some banks, like HSBC Mexico, offer mortgages to foreigners with residency).

3. Pre-Approval Process

• Submit documents (ID, proof of income, tax returns, bank statements).
• Bank assesses eligibility and gives a pre-approval letter (valid for ~3 months).

4. Property Search & Due Diligence

• Find a property within budget (use a trusted real estate agent).
• Verify property title (no liens, disputes, or legal issues).
• Appraisal required by the bank (costs ~200–200–500 USD).

5. Final Loan Approval & Signing

• Bank reviews appraisal and finalizes loan terms (interest rate, term length—typically 10–30 years).
• Sign promissory note & mortgage deed (at a notary public).
• Pay closing costs (~3%–7% of property value, including notary fees, taxes, and insurance).

6. Property Transfer & Disbursement

• Notary registers the property in your name at the Public Registry.
• Bank disburses funds to the seller.
• You receive the deed (escritura pública) and start mortgage payments.

Key Considerations:

• Interest Rates: Fixed or variable (typically 8%–12% for locals, higher for foreigners).
• Foreign Buyers: May need a Mexican co-signer or higher down payment (30%–50%).
• Insurance: Mandatory (home insurance, sometimes life insurance).
• Currency: Mortgages are in MXN (pesos)—foreigners face exchange rate risks.