Mortgage financing has had a difficult time finding roots in Vallarta. Its now been about five years since it was first introduced and to date, mortgage financing is playing a small role in overall sales in our local real estate market. Over that period of time though, the mortgage lenders and brokers have had the time to get the process working better. At first they were plagued by long time delays, as they tried to put all the paperwork necessary together as quickly as possible. Owners, who had offers on their homes subject to financing thought their homes were sold, only to face long delays waiting for the financing to be approved. The Realtor ended up dealing with their impatience. On the other side, the purchaser, now back at home in the USA, sometimes became frustrated with how long it was taking, was no longer “in the picture” as they were when they were in Puerto Vallarta, lost interest and sometimes backed out of the deal. This all made Realtors a little gun-shy of bringing up the idea of financing with a prospective purchaser. We’ve said for years that our market tends to be “cash” market, but that’s not necessarily true. What many people did was just go back home and re-mortgage a property in order to obtain the funds needed for the purchase in Mexico. Well, with the way things are going back in the USA, those funds may not be quite as available as they once were. Fortunately mortgage financing in Mexico has matured. There was a wave of brokers that came to town a few years ago, some of them good, some of them not so good. The not-so-good for the most part have left town, leaving us with seasoned mortgage brokers who have a number of deals under their belts so they now know how to streamline the process and get through approvals much quicker. Over this time mortgage rates have also fallen, making financing in Mexico more attractive. Years ago I remember writing that the availability of mortgage financing will make the market really take off. Well, financing never really came through but the market took off regardless of that. Now, with the market starting to slow down, (at least not the frenzy market we had, which in itself is healthy), mortgage financing is rightly positioned to assist buyers and Realtors to continue to put sales together.
Will Mortgage Financing Availability help us out?