How NOT to Prepare for Closing on a Mexican Home (But It Worked Out Anyway)

I swear the wait was about a year, but closing was finally within sight. I was a bundle of nerves and excitement. I'd never done anything like this before, and I was relieved too. Relieved because if things went the way I expected them to go in the US, my family had our escape hatch.

The Plan That Almost Wasn't

The plan was simple enough: sign a power of attorney so my attorney could handle the closing since the timing didn't work with my limited vacation schedule. The house was supposed to be ready a month earlier, but with the usual delays (or maybe the universe giving me a hand), it looked like I might be able to sign in person after all. When I told my broker I was planning a visit, she jumped into action to make that builder finish before I arrived.

Stress City, Population: Me

It was a stressful experience, and I wasn't even there. Would they finish in time? Were we going to be able to close? Why couldn't they actually give us a closing date? In the US, I definitely had more than a week's notice before closing. Heck, my first condo was a new build and we scheduled our closing date well in advance—it was predictable.

"Finished" vs. "Finished Finished"

A week or so before my trip, I got the news it would be finished, or "finished," and we could close during my stay. Then, I learned, it wasn't finished finished, but we could close anyway while they wrapped up little things here and there. One of the many things I've learned about buying a home in another country is that it's completely different—different rules, different expectations—and it requires a lot of trust. And trust isn't something I give easily.

In my head I was like, "Well, if you're not finished, I'm not signing nothing! You think I'm Boo Boo the Fool?"

But what actually came out of my mouth was, "Well, if you're sure this is how things are done here, I'm going to trust you because this isn't my area of expertise."

Trust. There's that word again.

Show Me the Money (In Two Currencies, Please)

In addition to all of that, there was another uncertainty–closing costs. In the US, I had a closing document that I'd received well in advance, so I could get my money together. In Mexico, I knew I had to pay some additional money for closing, but I figured it wouldn't be a whole lot. Maybe a couple thousand, so I put money in my Wise account to convert into pesos. I thought I was being smart and getting ahead of things.

The night before our flight I got an email with the closing cost breakdown:

• Two fees had to be paid in pesos

• One fee had to be paid in USD

• Some fees had to be paid in CASH

  
  

That wouldn't have been a problem if I'd been in New York. But, I was in Michigan where my bank doesn't have a branch and my Mom's bank needed at least a week to order foreign currency. A WEEK. TO ORDER. CURRENCY. What?!

There I was, late at night, stressed out of my mind, trying to figure it all out. I had ATM withdrawal limits through Wise and my US bank. If I went through my bank in Mexico, the exchange rate would be terrible. I've said this before, and I'll say it again–I don't like leaving money on the table.

I was up half the night, my brain spinning, trying to find a way to get this currency in time.

The Money Scramble Solution

I woke up the next morning and it clicked: I would transfer the money to my Mom who would withdraw the USD and give it to me immediately. Once we arrived in Mexico, I would bite the bullet and exchange the money at my bank there. I really had no choice, and this is exactly why you should get the closing cost estimate days in advance, especially when dealing with different countries and currencies.

The Awkward Banking Situation

There was a whole other thing I had to deal with—the bank I was using in Mexico had a business model built on customers wiring money to them and exchanging the funds electronically. When I opened my account, I thought I was going to do everything through them, which made sense at the time. But then I found Wise and the exchange rate was way better. So I used Wise instead. What I didn't realize was that by doing this, I'd put the banker who helped me in a bad position.

The banker I worked with was definitely not happy when I walked in, practically begging her to do the exchange. She insisted that she explained how the company worked and I insisted it wasn't clear to me. I thought I just needed an account in Mexico, not that I was locked into using them as my currency exchange to buy a home. I thought that was just a service they offered to non-citizens who needed a Mexican bank account to buy property. Anyway, I couldn't focus on feeling bad about it because it was my money and I needed to do what's best for me. Thank goodness she eventually helped me out.

Lesson Learned: Use Wise (or some other service) from the beginning if you can.

Money Musical Chairs

I could only convert $4,000 USD through the bank which meant I had to get creative for the rest. I ended up getting some from my Mexican account and some through my US bank through two separate withdrawals. Finally, I had all the cash I needed.

But guess what? They were not ready to close. Sigh.

The Non-Citizen Property Rules

When you're not a Mexican citizen and you want to buy a home within a certain distance from the sea, you can do it but you need to have a bank trust. That paperwork didn't make it from the bank in time for the lawyer to review it, so closing was postponed by a day. All that stress and running around for nothing.

Closing Day: Expectation vs. Reality

Finally the day arrived. Mom and I went to the notario's office to sign. FYI, a notario is not like a US notary—these are legit attorneys.

I was expecting to sign a mountain of documents like we do in the US, but once again, I was wrong. The notario brought a huge, leather-like binder with the closing documents and explained what they were. There was no time to read them (plus I don't speak Spanish—remember what I said about trust?). I signed the document, then signed two other papers, showed my passport and visa, paid her the money in cash, and that was that.

It was shockingly simple.

The Final Steps

The builder was there for part of it. He had to bring documentation proving he'd paid all the bills, including taxes, and sign a paper. He answered all my questions (and I had plenty). They even gave me papers listing all the things I should do to maintain the house—who knew that was a thing?

From there we went to the bank where I had to pay the annual fee for the trust. Then, we went to the builder to pay the required association fee. After all of that, I was completely wiped out...and I became the owner of my second home and my first in Mexico.

Achievement unlocked!