Payment with a mortgage loan? Cash? Both?

The method of payment to use for purchasing a property will depend on the amount of money you have to invest and your credit reputation. Your budget will help you choose the area, type of land, and dimensions of your new property.

There are mainly two payment methods:

1. Through a mortgage loan granted by a financial institution.
2. Through a cash payment.

If your option is to purchase using the cash payment method, then you know the budget you can access. However, even if you have the money, it's always good to consider financing, which could help you buy a more valuable property.

Now, in the case that you do not reside in the country and wish to buy a property, in the United States, there is the possibility to apply for a mortgage loan from a financial institution with an initial payment that typically ranges between 25% and 50% of the total property price, and an average interest rate of between 5% and 7% with a term of 30 years.

For individuals who reside in or are American citizens, these numbers change abruptly because they could purchase a property only by contributing an approximate percentage of 9% of the total property value as an initial amount, and in many cases, closing costs are included. Remember to inquire in the country you are in about the different types of payment they offer.

Once you have clarity on the payment method you wish to use: cash, loan, or even cash and loan, then we can discuss the budget. This will allow you to determine the areas and types of properties you could access.

Gaspar Michel

Gaspar Michel is a real estate agent in Tulum. I have lived in the Riviera Maya for 3 years and I can help you navigate the pros and cons of each city. I can help you if you are looking to buy a new home for yourself/family, a vacation rental, and/or both. I can help you find your dream home even if you are not a Mexican citizen.