
A property that is financeable, generally has certain characteristics that make it attractive to be acquired through a mortgage loan or other type of financing. Here are some of these characteristics:
1. Clear Title: The property must have a clear title with no legal problems, which guarantees that the property can be transferred properly and safely.
2. Market value: The property must have a market value that allows obtaining a mortgage loan for its acquisition. This value is evaluated by professional appraisers, but your broker can prepare a CMA (Comparative Market Analysis) to know what price is appropriate to market your property. Generally, this report is very close to the appraised value if prepared by an experienced and knowledgeable broker.
3. Attractive location: A property with a desirable location, such as an area with good infrastructure, accessibility to public services, security and potential for growth in appreciation.
4. Good state of preservation: The property must be in acceptable maintenance condition and not require major repairs or renovations that may affect its financing.
5. Complete documentation: All documents related to the property, such as deeds, taxes, and others, must be in order and complete.
6. Compliance with local regulations: The property must comply with local laws and regulations in terms of zoning, building permits, among other legal aspects.
7. Capacity of indebtedness: The buyer must have the financial capacity to pay the down payment and cover the monthly mortgage payments, according to his current income and debts.
8. Status of the property in the CRIM: It must be segregated or appraised for CRIM tax purposes. If it is not ready, you should consult with your broker to know the steps to follow.
9. Illegal constructions: The property cannot have illegal constructions, that is to say, those that are made without permits. In particular, this becomes a problem when the construction invades land that is not your own. Also, if they do not comply with building codes. Septic tanks that do not have the required 2 chambers or the distance from the property and the property’s boundaries, etc.
10. Type of property acceptable for financing: The property must be within the categories acceptable for financing, such as single-family home, condominium, apartment, etc. For those properties with more than 4 dwelling units the financing will be commercial, not residential.
In conclusion, all of these characteristics help determine if a property is financeable and attractive to potential buyers looking to purchase through mortgage financing or other forms of real estate lending. It is important to consult your Realtor to evaluate your property and identify what situations need to be addressed before placing the property on the market.