How to finance the purchase of a home in Fuerteventura

How to finance the purchase of a home in Fuerteventura

Although the data show that half of all home sales and purchases in 2023 will be made without a mortgage, there are many who need external financial support to buy a home, especially if it is a first-time purchase.

What is the amount of the house that can be financed?

To grant a mortgage, the financial entity takes the lower of the sales value and the appraised value, that is to say, if the appraisal is higher than the sales value, the percentage to be financed will be on the sales value and not on the appraised value.

The most common is to grant between 60% and 80% of the appraised value, as long as the installment to be paid does not exceed between 30% and 40% of the buyer’s debt capacity.

Based on these data, in some cases it may be possible to negotiate and obtain up to 100% of the appraised value.

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The most difficult thing is to know, according to your economic situation, which financial institutions can grant you financing and, among these, who can grant you the most favorable for your interests.

At this point, it is important not to be confused by the demands of linking the mortgage to other financial products, a normal practice in lending institutions.

Before you make an offer on a property, it is imperative that you know your real chances of obtaining adequate financing.

What does it take to get a mortgage?

It is highly advisable that you have some prior approval, as this may help you in negotiating with
the owner.

The owners value very much that the people who are interested in their property will not have problems later with the financing, because the sale will depend on this.

The documents required when applying for a mortgage are:

  • DNI of the holders of the mortgage loan
  • Last year’s income tax return
  • Up-to-date employment history of all mortgage holders
  • Proof of other income you may have
  • Employment contract and last pay slips (salaried employees)
  • Annual income tax and/or VAT return, last Social Security receipts (self-employed)
  • Receipts of loans or active debts
  • Bank statements for the last few months
  • Simple note of the property to be mortgaged
  • The earnest money agreement, if it has been signed

We help you negotiate the best conditions to finance the purchase of your home

We will help you find the best loan through our financing department, since we have professionals with extensive financial experience.

We get the mortgage pre-qualification, estimating the amount that can be obtained for the payment of a house.

The pre-qualification record is proof of financial ability to purchase a home that is within the pre-approved amount.

home buying guide fuerteventura

Esta información está disponible en / Post available in: Español (Spanish)

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