What documents are needed to get a mortgage in Spain?
More and more people are dreaming of having their own place in Spain, one they can enjoy all year round. It could be a lovely house with a pool, a charming apartment in a picturesque town by the sea, or an exclusive villa with unique views. With a mortgage, we can turn these dreams into reality and secure the property of your dreams.
Where should you start? What should you pay attention to? What documents do you need to prepare to get a mortgage in Spain?
In the following article, we’ll try to describe all the most important aspects to clear up any doubts you may have about this topic.
The process of applying for a mortgage from abroad can present certain challenges, such as language barriers or difficulties communicating with the bank. To make the whole process easier and more pleasant, it’s advisable to use the services of a professional real estate agent or an office that, as part of its team, includes a professional credit advisor.
A real estate agent or credit advisor is someone with experience and knowledge of the local market and regulations. Thanks to the wide range of services provided by a professional of this kind, you’ll have the peace of mind that every aspect of the transaction will be prepared professionally and handled properly.
Before moving on, it’s important to mention that one of the most important aspects is the information that obtaining a mortgage will only be possible through a bank located in the country where you intend to buy the property.
Why is that? Well, as the lender, the bank will be able, in the event of non-payment, to secure its obligation by means of the very property being purchased. It’s not possible to request a mortgage in one country to buy a property in another, because the bank finds it difficult to analyze the property documents that it will partly finance.
In Spain, banks typically lend to non-residents between 60% and 70% of the property’s value, and up to 80% for Spanish citizens or residents. This means you’ll need to make a down payment of between 30% and 40% of the property’s value. In addition, it’s important to remember that property prices in Spain are always quoted in net terms, so you need to include in our calculation the amount of taxes and additional costs related to the sale. That’s why it’s important to take everything into account and plan your financial situation in advance with an appropriate own contribution.
Analyzing our creditworthiness will allow us to have realistic expectations and helps us get through the mortgage process more quickly. To carry out a reliable assessment, it will be necessary to submit financial documents that confirm the income received over the past two years, as well as an up-to-date credit report containing information about current liabilities. It’s worth remembering that taking care of your credit history and paying your other obligations regularly and on time is important when applying for a loan.
You should also keep in mind that banks will require that all documents be translated into Spanish or English. The translation must be carried out by a sworn translator to ensure the documents are completely reliable.
The next step is to choose a suitable bank and offer, since different banks offer different interest rates and repayment terms. In this case, it’s also advisable to consult our real estate agent, who will help you find the best offer tailored to your needs and will assist you with the communication and submission of all the documents required by the bank.
The entire process of assessing your creditworthiness and valuing the property—which is also necessary to obtain a loan—can take between 2 and 3 months. It’s worth keeping this in mind when signing the property reservation contract of our choice, which sets out the purchase conditions and the timeframe for formalizing the notary deed.
When you decide to buy a property, we know how important it is for you to have optimal financing. Therefore, you can rely on our knowledge and experience to find the best solution for you.
Our offer includes:
1. Knowledge and Experience: Our authorized real estate agents and financial advisors will provide you with detailed information about the process of obtaining a mortgage in Spain. We’ll guide you throughout the entire process, ensuring clarity and understanding.
2. Tailored approach: We understand that every financial situation is different, so we offer customized solutions adapted to your needs and capabilities.
3. Security in the transaction: We act in accordance with the strictest ethical standards and comply with all the legal regulations governing the real estate sector. Your peace of mind is very important to us.
4. Professionalism and commitment: Our team is made up of experienced experts who are ready to meet your expectations. We’re proud of the high quality of the service we provide to our clients. We have authorized agents, a credit advisor, and an in-house lawyer permanently on site to attend to our clients.
We invite you to visit our office in Benidorm at Avenida Bilbao 1 or call us to discuss the details and arrange an appointment. Enjoy a feeling of security throughout the process of obtaining a mortgage in Spain.
