So What are the Closing Costs in Mexico?
Understanding the Good Faith Estimate
Â This Good Faith Estimate (GFE) is just what the words say; in good faith we are estimating the closing costs for your loan and real estate transaction.Â These estimates are as close to the real thing as can be obtained; some items may change during the transaction (for a cash purchase or for a loan purchase/refinance).
The GFE provided to you is a hybrid form using American and Mexican loan/real estate terms.
Most of the fees reflected on the GFE are standard Mexican real estate fees that would be charged regardless of whether the transaction is all cash or with a loan.
Fees regardless of whether the transaction is all cash or with a loan
-Â Â Â Â Â Â Â Fideicomiso (trust), the legal instrument, like a living trust that allows foreigners to own property in the federal restricted zone (100 kilometers from any border and 50 miles from the coast). However all properties that have loans require a guarantee fideicomiso regardless of area. (Non-Mexicans only). $400-$600
-Â Â Â Â Â Â Â The Notaria Publica is a real estate attorney and you will sign before him. All real estate transactions are completed by the Notaria.$2,500 and up
-Â Â Â Â Â Â Â SRE permit for foreign registry $130
-Â Â Â Â Â Â Â RNIE foreign investment permit, which allow the bank to issue the fideicomiso.$600
-Â Â Â Â Â Â Â Fideicomiso (trust) initial setup fee and the first year fees which are collected upfront $400-$600
-Â Â Â Â Â Â Â Public registry (like county recorder) of the fideicomiso and the guarantee (security for the loan)
-Â Â Â Â Â Â Â Certificate of no liens fee under $100
-Â Â Â Â Â Â Â Certificate of no tax debt fee Under $100
-Â Â Â Â Â Â Â Certificate of no water debt fee Under $100
-Â Â Â Â Â Â Â No debt / municipal and state fee (depending on the state where property is located)
-Â Â Â Â Â Â Â Castastral certificate fee Under $100
-Â Â Â Â Â Â Â Closing agent fee, to assist with the execution of the closing (ensures the property has good title, interfaces with all parties, order all permits, ensures all certificates and documents are ordered and received properly, may perform a title search and arrange for title insurance if you choose to obtain, provides a trusted person to sign on your behalf if you cannot return to Mexico for the closing). While a closing agent is not required for a cash purchases it is strongly recommended Varies by closer can be as low as $500 to many thousands depending on the work to be done.
Fees specifically related to the loan
-Â Â Â Â Â Â Â Origination points 1-3%
-Â Â Â Â Â Â Â Commercial appraisal fee (Avaluo Bancario) 1% of property value
-Â Â Â Â Â Â Â Loan application fee (which includes a credit report fee) $0-$400
-Â Â Â Â Â Â Â Loan processing and closing fee $0-$500
-Â Â Â Â Â Â Â Underwriting and funding fees $400-$1000+
-Â Â Â Â Â Â Â Registration fee for the GUARANTEE portion of the fideicomiso Varies
-Â Â Â Â Â Â Â Lenderâ€™s title insurance opinion and policy fee Varies byÂ loan and property value
-Â Â Â Â Â Â Â Escrow fee $500-$750+
-Â Â Â Â Â Â Â Hazard insurance fee (varies for each loan program)
-Â Â Â Â Â Â Â Loan servicing monthly fee
-Â Â Â Â Â Â Â Refinance transactions will need an extinguishment of the existing fideicomiso and set up of a new fideicomiso with a guarantee trust that allows the lender to foreclose in the unlikely event that you do not pay your mortgage (similar to the rights that a lender has on a property in the U.S. or Canada)
Please feel free to contact your Loan Originator if you would like further explanation as to the fees in your GFE.
We will be happy to refer you to a reputable loan officer.
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