With mortgages becoming more of the norm in Mexico and with ever-increasing loan options, The Tribune is helping sort through the confusion by having your personal Financing/Mortgage questions answered by our local experts – David Schwendeman and Terence Reilly, Founder’s of MEXLend, an industry-leading Mortgage Broker based in Vallarta. We invite you to e-mail your questions regarding buying or financing Real Estate in Mexico to buyinginmexico@hotmail.com.
Q: “How Can I Fix Problem Credit If I Live In Mexico?” Anna Garcia, Puerto Vallarta, MX
A: Part 1
The best way to ensure good credit is to manage debt wisely from the start. Borrowing within your means, using credit cards responsibly, and most importantly – making monthly payments ON TIME is the key to keeping those all important credit scores where they need to be.
However, it would be naïve to expect everyone, everywhere to follow that advice consistently. In fact, it is rare that we as mortgage professionals come across a client who hasn’t, at least at some point in their life, had a credit issue to contend with. The good news is bad credit – depending on how bad – can sometimes be repaired. However, it can take time patience and often cash to get the job done.
Typically, a mortgage broker will run what is known as a tri-merge credit report very early on in the borrower’s applications process. Often clients will provide their own as a basis - since these days it is much easier for the general public to have access to their personal credit information. Though, it should be emphasized that mortgage brokers are required by our lenders to provide a specific, specialized type of report that most people do not have access to on their own.
This, comprehensive, tri-merge report gives data from Experian, Equifax and Trans Union – the 3 major credit reporting agencies. Each of these agencies issues its own version of scoring credit – anywhere from 300 to 850. Most Banks will use the middle score when determining loan approval. So if the lending bank’s middle score requirement is 680 (typically required for Cross Border Loans, however, occasionally we can work with lower numbers) and a borrower’s scores come in at 672 – 686 and 690, respectively, then the borrower will likely qualify – 686 being the middle score. The reasons scores and data can differ between the 3 agencies are complex and could require a book or at least several articles to explain. But let it suffice that credit data can be interpreted differently, particularly when computer analysis is involved.
MEXLend, Inc. is a Mexican mortgage brokerage that currently represents 8 different lenders offering 75 different loan options in Dollars, Pesos and Euros for buyers looking to purchase vacation or investment property throughout Mexico – including products specifically for Canadian citizens. In announced results based upon post-closing client interviews conducted by Mexico’s largest US lender, MEXLend won the #1 mark of distinction for both client satisfaction and fastest closings for the second straight cycle. MEXLend can be reached at 322-132-7991 (in Vallarta), 917-779-9061 (while in the US or Canada), toll–free in Mexico by calling 1-800-3-Mi-Casa or go online at www.mexlend.com (For US and Euro loans) or www.mexlend.com.mx for Peso loans.
Q: “How Can I Fix Problem Credit If I Live In Mexico?” Anna Garcia, Puerto Vallarta, MX
A: Part 1
The best way to ensure good credit is to manage debt wisely from the start. Borrowing within your means, using credit cards responsibly, and most importantly – making monthly payments ON TIME is the key to keeping those all important credit scores where they need to be.
However, it would be naïve to expect everyone, everywhere to follow that advice consistently. In fact, it is rare that we as mortgage professionals come across a client who hasn’t, at least at some point in their life, had a credit issue to contend with. The good news is bad credit – depending on how bad – can sometimes be repaired. However, it can take time patience and often cash to get the job done.
Typically, a mortgage broker will run what is known as a tri-merge credit report very early on in the borrower’s applications process. Often clients will provide their own as a basis - since these days it is much easier for the general public to have access to their personal credit information. Though, it should be emphasized that mortgage brokers are required by our lenders to provide a specific, specialized type of report that most people do not have access to on their own.
This, comprehensive, tri-merge report gives data from Experian, Equifax and Trans Union – the 3 major credit reporting agencies. Each of these agencies issues its own version of scoring credit – anywhere from 300 to 850. Most Banks will use the middle score when determining loan approval. So if the lending bank’s middle score requirement is 680 (typically required for Cross Border Loans, however, occasionally we can work with lower numbers) and a borrower’s scores come in at 672 – 686 and 690, respectively, then the borrower will likely qualify – 686 being the middle score. The reasons scores and data can differ between the 3 agencies are complex and could require a book or at least several articles to explain. But let it suffice that credit data can be interpreted differently, particularly when computer analysis is involved.
MEXLend, Inc. is a Mexican mortgage brokerage that currently represents 8 different lenders offering 75 different loan options in Dollars, Pesos and Euros for buyers looking to purchase vacation or investment property throughout Mexico – including products specifically for Canadian citizens. In announced results based upon post-closing client interviews conducted by Mexico’s largest US lender, MEXLend won the #1 mark of distinction for both client satisfaction and fastest closings for the second straight cycle. MEXLend can be reached at 322-132-7991 (in Vallarta), 917-779-9061 (while in the US or Canada), toll–free in Mexico by calling 1-800-3-Mi-Casa or go online at www.mexlend.com (For US and Euro loans) or www.mexlend.com.mx for Peso loans.
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