The Loan Process 

 

The Application

In order to process your application for a mortgage loan, we will request a variety of information and a number of documents. In order for the process to go smoothly, you should be prepared to provide the documents and information we may request regarding your income and employment history, personal assets, liabilities and credit history.

 

As noted, in connection with your application, we will also order one or more credit reports on you from credit reporting agencies in U.S. In addition, we will obtain a credit report from Trans Union de Mexico S.A., a credit reporting agency in Mexico. If you have ever obtained credit in Mexico, the repayment history on those loans will be reported. Even though this information is not included in the determination of your credit rating, it may influence the approval of your loan.


Evaluating Your Application

Once you submit a loan application, we will evaluate your loan application based on a number of factors, including:

  1. Your credit rating (often reflected as a numerical credit score)
  2. Your mortgage repayment history
  3. Your debt to income ratio
  4. The value of proposed property based on an appraisal
  5. The combined loan-to-loan value ratio associated with your loan


Right to Receive Copy of Appraisal

As part of the underwriting process, we will order an appraisal of the property you want to acquire. The appraisal is conducted to determine the fair market value of the property and is paid for prior to closing. There will also be an appraisal done for tax value (castral appraisal) ordered by the notario and paid for at closing.

 

 

Mortgage Disclosures and Documents


Application Disclosures

Because your mortgage loan is secured by property in Mexico, closed in Mexico, and made by your lender in Mexico, it will be governed by Mexican law. But we realize that U.S. citizens are accustomed to receiving certain disclosures when applying for a mortgage loan. So we will provide several of the disclosures that you are accustomed to in the United States. These disclosures include:

  1. Good Faith Estimate of Settlement Costs. This estimate outlines the anticipated costs associated with your loan such as points, origination fees, and fees charged by settlement service providers. In addition, it informs you of any settlement service providers we may require you to use.
  2. Estimated Truth-In-Lending Statement. This statement shows, among other things, the estimated total cost of your finance charges, expressed as a dollar amount and stated as an annual percentage rate, and the estimated monthly principal and interest payment over the life of the loan.
  3. Equal credit opportunity notice.


Other Important Disclosures


Insurance

Property Insurance - We require each borrower to purchase insurance on the property used as collateral to cover any property damage. We may require that the property insurance meet certain requirements, such as guaranteeing that the insurer will pay the cost (or part of the cost) of rebuilding your home if an insurable event occurs. We also may purchase insurance at your expense to protect our interest in the collateral, in which case, you will be provided with all the information regarding the insurance and its costs.

Life Insurance - If a mortgage loan is secured through a guarantee trust, you will not have to purchase life insurance but you will have to designate a beneficiary of your property, because in the event of death of borrower, your beneficiary may pay off your loan to obtain ownership of the property or the trustee will sell the property and pay the mortgage loan and pending fees, and the rest of the money will be given to the designated beneficiary.

Title Insurance - You may conduct a title search and a title insurance policy or other protection document as written assurance as to the state of the title to the property securing your loan, as well as any independent, competent advice to protect your interests. If you are interested in obtaining title insurance for your home, you may obtain the insurance from First American Title or Stewart Title for an additional fee.


Borrower’s Rights

  1. Shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
  2. Be informed about the total cost of your loan, including the interest rate, points, and other fees.
  3. Obtain a “Good Faith Estimate” or other disclosure, of all loan and settlement charges before you agree to the loan.
  4. Know what fees are nonrefundable if you decide to withdraw your loan application.