Q: “How would I go about selecting one Mortgage Broker over another? Don’t you all offer the same products and services? Yolanda Fisher, Denver, CO

A:
Choosing a Mortgage Broker in Mexico is a lot like choosing a Realtor or Attorney anywhere else. A referral from a trusted source is almost always the best way to go, as the quality of service, attention to detail and processing times can vary quite a bit between firms. Your Realtor or Real Estate Attorney will most likely be able to offer some sound advice on “who”? best to service your needs. In addition, all Mortgage Brokers in Mexico DO NOT offer the same products and services. Some have aligned themselves with only 1 or 2 Lenders – while others have a much broader spectrum of products.

Below is a list of questions a borrower should be prepared to ask before beginning a relationship with a Mortgage Professional in Mexico.

1. Have you closed any loans in Mexico?
The Mortgage Industry is still very new in Mexico and as it continues to establish itself, some companies have only just opened their doors. Frankly, it is a lot more labor intensive to write loans in Mexico than in the US or Canada and not every Broker has the knowledge or stamina to see the process through. That said, you want to go with a Mortgage Broker with a proven track record of ACTUALLY CLOSING Loans, preferably in a timely fashion.

2. Where are your offices located and where are your loans processed?
Some Mortgage Brokers dealing in Cross Border Lending operate their Mexican Businesses as a sideline to their US Mortgage Operations. Some maintain “bricks and mortar”? office space in Mexico, some have Sales Representatives or Loan Officers on the ground here – while maintaining office space in the US, where the processing occurs and still others only operate from the US via phone, fax, e-mail and overnight express.

At the very least, your mortgage broker should have some one on the ground in Mexico, in the area you are buying, to facilitate the signing and delivery of documents and to navigate the various bureaucratic systems here. Mexican Loans can be far more complex than in other areas and a physical presence is key to expediting a seamless closing. Also, Mexico has not yet completely embraced the notion of “e-commerce”?. Notarios, Realtors, Bank Trust Managers, Attorneys, Developers, etc . . . all prefer a modicum of face-to-face negotiations when conducting business. This instills a sense of trust and accessibility – which bodes well for a smooth transaction.

In addition, working with a Broker who deals exclusively with Cross Border Lending will likely afford you a higher level of expertise and client satisfaction. If you think about it – do you really want to work with someone who is concentrating on two entirely different processes at the same time?

Lastly, it is virtually impossible to process a Mexican Loan entirely from a US office. Cross Border Loans are document heavy and the Mexican Authorities require original signatures on most items. The ability of a local Mortgage Broker or Loan Officer to hand deliver signed originals – in pinch – goes a long way towards a smooth closing.