Need help navigating the financing labyrinth for a real estate deal?

Getting the money to pay for the purchase of a property defines in most cases whether a deal is possible or not. That is why the role of the mortgage broker, and their intervention to obtain a loan, is so important.

With more than 20 years of experience in obtaining financing for real estate operations, Maria Somarriba is recognized as a key figure in Key Biscayne when it comes to thinking about financing an operation.

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In a chat with Islander News, Somarriba – founder and president of Magellan International – gives essential details about the mortgage market, the rise in rates, and other aspects of requesting a loan to buy a property. But first, about her family background:

“My family is from León, Nicaragua, but we grew up in Managua,” Somarriba said. “I left Nicaragua when I was 13 years old. I have spent almost my entire life here, but our roots are very strong, friendships remain, and we have a very strong Nicaraguan community in Miami. I still meet kindergarten friends that we met in Nicaragua.”

In the 1990s, she started working on the finance side of real estate development. “Then I went to the mortgage part in Fortune, with Edgardo De Fortuna. And from there I became independent and opened Magellan, which was initially in Mashta. Later I opened the office in The Square. Magellan International is a unique boutique operation here in Key Biscayne.”

Somarriba’s daughter Valeria, 18, just left for her first year of college in North Carolina, which is “something that generates very strong emotions for all parents.” Meanwhile, her second daughter, Lolita, 11, studies at St. Agnes.

IN. Many operations fall because the loan is not obtained. How do you make sure you’re going to get the money?

MS. My strength is the relationships with the different parties. WithReal Realtors, with clients, with banks. Our strength is being able to do a full underwriting from the beginning, giving consistency to the transaction from the start. There are always sensitive parties, such as a condominium association. Sometimes a sale falls through because the documents the bank is asking for are not obtained.

And you have to understand that each bank needs a comfort zone. In the first week I already know if we have a consistent client and a transaction on track or we are going to have problems. There are gray areas that can surprise you, so you must have other options if something happens.

We don’t lose a deal. I’m going to follow it and we’re going to get it. Although sometimes I do have to tell some customers that they have to wait. I sit with them and explain. Sometimes it’s better to say no.

IN. How is the relationship with the realtors?

MS. It is a very important relationship in my work. We make a team to achieve the success of the transaction. It all starts with the realtor who brings the transaction and needs the confidence that he is going to obtain the financing to see the operation through to the end.

In this effort are the buyer, the seller, lawyers, realtors, and the commitment of the mortgage broker. All following a guide, which is the contract. As a mortgage broker I am going to fight for that transaction, if I can’t get it with one bank, I go to another or another, I have to have many options to be able to move forward.

Here in Key Biscayne we have an impressive quality of Realtors. Most of them have more than 10 years in the market and that has a very high value.

IN. Are you worried about current economic conditions? That the market slows down too much due to a recession?

MS. We already had a crisis in 2008, and we passed it. There were even times when interest rates reached 11%, but there you see the beauty of the capital market, competition begins, and banks begin to offer new products. In addition, Miami has many factors that help it.

It was created as an international city and here we always have an outlet because not even in 2008 and 2009 did the transactions stop. There is always a push. Sometimes it is Colombia, Brazil, Argentina, Peru, or Central America. Foreign investors come.

And now the Americans who come to buy in South Florida are added. That new market that opened from the north during the pandemic adds to the international market that we have always had.

IN. For those who are looking for a loan and are afraid of rising rates. Would you tell him to hurry up before they go up more?

MS. The interests have risen, but when we put all the information in the file and make the profile, the client sees what his numbers are. It’s not my style to tell someone to hurry up. I will inform you so that you make your own decision.

I can give you analysis so you can see your numbers with your family. I try to be efficient in the information so that they can make a good decision.

IN. Can international customers qualify?

MS. You might be asked for more money up front. between 30 and 40% more. But they are very active markets, we have been making loans for foreigners for a long time, and the banks have clear procedures for them.

Banks that work with foreigners ask for an automatic payment. 40% of the loans we currently make are for foreigners, most of them from South America.