Mortgages in Puerto Vallarta
Have you ever dreamed about buying a place in Puerto Vallarta, with its beautiful sandy beaches, tropical nature and wonderful weather? Now, you can make that dream come true without taking equity out of your property that you own in America. Recent changes make it possible that mortgages are now available to Americans who like to purchase a property in Puerto Vallarta.
The regulations about the foreclosure of property owned by foreigners were recently adjusted, opening up the market to non-Mexicans. The purchase of a property in Puerto Vallarta has proven to be a great investment for all kinds of people, like someone who's looking for a second residence or retirement home buyers. Now that you have the chance to apply for a mortgage the real estate market has boomed and this movement will be stimulated over the next few years, that's for sure.
However, finance companies and banks will have different guidelines. You will not be able to find a construction loan or a bridge loan with every institution, some of them will just be offering a loan to buy a residence that is already completely finished.
Your credit worthiness will be researched and the maximum loan to value ratio will be 70 to 75 percent. Sometimes you will be able to get it up to 80 percent, but that will be one of the rare occasions. The loan time is normally spread over 15 to 20 years, but in some cases adjustable to suit the needs of the borrower. In Puerto Vallarta you will be able to choose between a fixed and a variable interest rate. The interest rates are slightly higher than the ones in the US. You will be able to choose the currency, pesos better than dollars.
As at home, a lender can ask for loan fees and one will charge more than another. It's wise to keep your eyes open and go and check out more than one finance company. Compare banks before you decide where to apply for your loan. Some may also ask that title insurance is acquired. Be sure to ask for all your estimates and the interest rate in writing, so you won't be surprised in the next step of the process. If you want to do a rough estimate of the calculation of a mortgage, you could use 8% on a term loan of 20 years.
One thing you will have to order is an appraisal, this will definitely be more expensive than in America, because appraisers are limited here and it takes up a lot more time to research all the data.
A lot of developers will offer you a pre-construction discount program. This program is often negotiable and will depend on the goodwill of the developer. It is worth it to check out different developers and take a look at their available offers.
The most important thing is to compare all possible options and get them all on paper. This way you can easily look at it again when you're back at home.
Puerto Vallarta no longer has to be a place in your dreams, you can have a place of your own now in this terrific paradise!