Full-duplex (FD) multiple-input multiple-output relaying has been considered an effective scheme to increase the spectral efficiency for wireless communications. As known, the main problem for the FD system is the cancellation of loop interference (LI). In this paper, we propose using the joint source/relay precoding to reduce the influence of LI. Therein, linear precoders are used at the source and relay, while the minimum mean-squared-error receiver is adopted at the destination. The joint precoder design is complicated when spatial multiplexing is exploited for signal transmission. To solve the problem, we propose an iterative method in which the original problem is split into two subproblems. With some matrix properties, we then show that each subproblem can be formulated as a convex optimization. Finally, a closed-form solution can be obtained with the Karush-Kuhn-Tucker conditions. Using a mean-squared-error upper bound, we also propose a low-complexity method to reduce the computational complexity. The proposed precoders have closed-form expressions, which is a great advantage in real-world implementation. Simulation results show that the proposed methods significantly outperform existing ones.