For residents who buy plots for more than €100,000, we can finance 100% of the work and the project, as well as 40% of the value of the land. For NON-residents, only 100% of the construction is financed.
We explain the process step by step, with a personalized advisor to carry out the financial study, at no cost.
We can manage it with you remotely, with documentation in your language and with a digital signature.
Before purchasing the house, we recommend following this procedure:
Search for the ideal house
Be realistic in terms of price In the majority of cases you will need to finance the purchase with a mortgage loan, so the most important thing when choosing your home will be working out how much you can spend.
Be flexible: Whether you are looking for a house by yourself, with a partner or as a family, there are many factors that will affect your decision.
Have you ever considered a resale property? Or a new build? Or buying to renovate? Or self promotion?
There are many options and it’s best not to rule any out, at least not at the beginning.
You should bear in mind that the majority of entities today are only going to finance up to 80% of the property’s value, so you will need to have some savings.
Estimate that you are going to have to provide around 20% of the property’s value to start with, as well as, for example, any other sale costs.
Remember that you can generally take out a mortgage to be paid off by your 75th birthday, provided that the term. You should bear in mind that the majority of entities today s no longer than 30 years.
What is a mortgage?
A mortgage is a product offered by financial entities that allows you to receive a certain amount of money earmarked for the purchase of a property, in exchange for undertaking to return, through regular repayments, this amount plus any interest generated.
The main collateral for the return of the loan is the property itself.
Who can I take out a mortgage with?
Normally they are granted by financial entities, usually banks or other financial credit establishments
In the interest of everyone’s safety, these entities are subject to the supervision of the Bank of Spain, in terms of both the control and the development of their activity and the protection of their clients’ rights.
You can make overpayments or partial repayments in advance: money that is paid that is more than the agreed monthly amount to reduce the debt.
Repaying all of the debt in one go is called redemption or full early repayment.
What types of mortgages are there?
Normally mortgages are grouped depending on the type of interest that applies.
Bearing this in mind, mortgages can be
- fixed rate (whereby you always know what you are going to pay), tracker (whereby the repayment is regularly calculated based on a base rate at that moment in time)
- or mixed (in which at the beginning a fixed rate is paid as the interest rate does not change, and then switches in the remaining years to a variable repayment, which can go up or down, depending on the standard variable rate).
How to choose?
It is important that you request a calculation of the various different mortgages suitable for your case from different entities.
Then you will clearly be able to see how much you would pay per month with each of the options and you can do your own calculations more easily.
Remember to consider and analyse the combination of products that you can add to your mortgage with other entities and that you are advised on the individual price of each product.
So, if you’d rather, why not visit a specialist who can help show you the ropes?
Now is the time to present all of the necessary documents so that we can review them and set up your mortgage.
Remember that this is an important process for both you and us, and everything must be as clear and transparent as possible.
It is necessary to make a loan request, to process your personal documentation and data. You will sign it digitally and we will request the necessary documentation from you to examine for the transaction.
Remember that our commitment to responsible lending makes us take the due time and pay attention to analysing whether your transaction complies with the guarantees of both parties.
What documentation are we going to ask you for?
Depending on your case (type of property to purchase, source of income…), we will need certain documents (legible photocopies).
Your financial advisor will specify exactly which:
› ID documents (ID card, passport or similar).
› Proof of separation or divorce, where appropriate.
› Documentation on income (depending on whether you are an employee, self-employed, etc. , both yours and any others who are going to enter into the mortgage agreement).
› Social Security employment record.
› Documentation on any other loans, if there are any, with any other entity.
› Documentation on the property.
› Bank statement.
› Most recent income tax return.
An insurance mandatory is not mandatory, but it is recommended.
With us, you decide what you want to insure.
Remember that the price of your mortgage will not be affected if you choose insurance with another entity, nor if you cancel it after signing the mortgage.
To formalise the mortgage
To definitively formalise the mortgage, we need to carry out a few more checks, to ensure the financial security of the transaction, for us and for you.
For this reason, we will have to ask you for the following documentation (but not to worry, they are general procedures that we will carry out with your authorisation and supervision).
» Title deed extract from the Property Registry “Nota simple”: To check all of the details of the properties.
» Valuation: It is mandatory that an independent entity makes an official valuation of the property, to establish its value.
With all of the documentation collected and details updated and reviewed, we will prepare the final mortgage offer.
So that everything is as clear as possible for you, we will give you various documents which will feature all of the details in writing, duly detailed.
Your advisor will go over them with you in person, point by point, checking that everything is correct or whether there is anything to review or clarify.
We have tried to guide you up to here in the most natural way, but if you still have any queries, contact your financial advisor. Also, remember that you must visit a notary for them to advise you before you formalise the loan.
Where and How do I sign?
Once you have signed all of the precontractual documentation there will be a period of reflection lasting between 10 and 14 days (depending on the autonomous region) aimed at assessing the operation as a whole and for you to visit the notary of your choice to receive the obligatory notarial advice before signing the deed.
Once this period is over and you have received the notarial advice, we will visit the same notary together to sign the sale and mortgage loan deeds. Both will be signed on the same day, one after the other.
What are the deeds?
The public document that is signed before the notary is known as the deed, and it reflects all the terms and conditions of an agreement, contract or transaction.
In the case of the sale of a property, two types of deeds are usually signed at the same time:
» Deed of sale: This is the document that contains the transferral of a property from one owner to another; the deed of sale is signed before the notary and entered into the Property Registry.
» Public mortgage loan deed: This is the contract that reflects the rights and obligations of the Financial Entity (lender) and the client (borrower).
We know that reviewing deeds is not easy and an expert who is looking out for your interests is necessary to helps you to check that everything is in order and, where appropriate, agrees to modify whatever you wish.
It is perhaps at this point that you will most value the figure of your advisor, who is going to play a truly important role for you.
You will be able to contact your advisor on this very special day, so that you feel safe and supported, making the moment truly emotional and positive.
You will leave the appointment as a homeowner!
Sign the mortgage
If you agree with the contents of the deeds, the next step is to sign before a notary on the agreed date.
To do so, you need to take the original ID card (or personal ID document) of all the people who are going to sign as new owners or parties involved in the mortgage to the notary’s office
The pre-contractual documentation that you signed will already be at the notary’s office and will be included in the mortgage deed.
Once before the notary, they will read the sale and mortgage loan deeds out to you.
The seller and the buyer (you) will sign the deeds of sale.
Then you must sign the mortgage loan deeds with us, and at that point, the payable amounts will be given to the seller, discounting any previous charges, where they exist.
Once signed, these deeds will be entered into the Property Registry. We will keep the original mortgage loan deed and you will receive a copy of it, together with proof of the settlements of the corresponding charges.
An agency that handles administrative activities will normally do this for you.
Processing all of the aforementioned (registry entry, settlement…) takes a few months.
As soon as it is all in order, we will deliver all of the documentation to you in a file that you must look after carefully, given that they are documents that identify you as the owner and as the mortgage borrower.
Remember that, even though you do not have all these documents in your possession, you are the owner of the property to all effects and purposes.
Your advisor will call you a couple of days after signing to check that everything went well and that everything was as you had envisaged.
Esta información está disponible en / Post available in: Español (Spanish)