How Is The Process To Obtain A Home Equity Loan?
Sure you heard that It is good business to use your property to get e ro din. The financial operation to which they refer is this: ask for a loan and give a property as a mortgage guarantee.
Requirements to obtain a home equity loan in Mexico
For these types of loans, although of course, depending on the financial institution or bank, usually the requirements they usually ask for are:
- Be between 18-25 and 70 years old.
- Be able to demonstrate a seniority in the work of 6 months.
- Present a stable income (it is not worth having them under the pillow). The financial institution is the one that will determine how much money you should receive in order to qualify for home equity loans.
- And, of course, you must own a property that can be a house, office or business premises that you will present as collateral.
1. Define your need for money
2. Know the options you have in the market. Here you can quickly know what options you have.
3. You choose the option that gives you the best conditions based on your need.
4. You present the documents requested by the entity you chose. These are some of the requirements:
- The property must have a factory declaration, be independent and notarized before the Public Registry – this requirement is very similar to when a mortgage credit transfer is requested . The bank will demand a first degree mortgage in your favor.
- Information about your income
- Documents of the property that you will give as a guarantee.
5. The financial institution will evaluate your request:
- Study of the viability of credit: your ability to pay according to income.
- Study of titles: Check that the asset can be mortgaged (it has no other mortgages or lawsuits or other restrictions and taxes are up to date);
- Appraisal: You will hire the services of a specialist to determine the commercial value of the property.
6. If everything is in order the bank will register a mortgage on your property until the day you finish paying the debt.
7. The financial institution will deposit the money in your account,
What interest rates and commissions do home equity loans have
Although they may vary by bank or financial institution, in general the interest rates and commissions offered for this type of loan are the following:
- CAT is used to 15%.
- The annual fixed rate is around 13%.
- In most cases there is an opening commission of 1.5%.
- The terms vary, although they tend to be 5, 10, 15 or 20 years.
What documents are necessary to obtain a home equity loan
As always, they may vary a bit depending on the bank or financial entity where you ask. But, generally, these are the ones that are going to ask you:
- The loan application of the financial institution.
- An official identification such as the INF or the Valid Passport.
- Proof of address such as a bill for electricity or water.
- A document that proves that you have stable income.