Since you have already known thatforeigners in Spain can also get a mortgage, you might wonder what are the steps andrequired documents. Here in this article, we will offer you a complete guide that assists you through the application process.
1. Prepare and submit the required documents to the bank:
The documents you need to submit consist of identity documents as well as documents to show your income, debts, and taxes. Here’s a list of the documents you might need to present:
Marriage certificate or prenuptial agreement (if applicable)
Documents for employment and income
The best and most important document to prove your employment status is the payrolls (nómina) for the last three months
If you work for a company, you need to present an employment contract.
If you are self-employed, you need to present an income tax declaration for the previous years.
Latest tax declaration document
Purchasing agreement with the seller
Document proving that all the property taxes are paid to date
Proof of your current assets and debts
A copy of your existing property deeds (in Spain and any other country)
Complete information about other loans you have
Note: All the documents should be in or at least legally translated or apostilled in Spanish.
2. Receive a mortgage pre-offer:
After the bank analyzes the documents and your case, they might make you the first offer. This offer aims to avoid any confusion derived from the verbal negotiation. And this offer must include the following information:
Amount and form of delivery of the loan
Amortization: number of installments, payment periodicity, amount and date of payment, partial and total amortizations
interest rate: nominal, revisions, benchmark
other expenses: appraisal
If any of the information has not been mentioned in the offer, you can ask for further clarifications.
3. Compare and accept offers:
When you get the first offer from a bank, you don’t need to make a decision very quickly. You still have time to compare offers with those of other banks or reliable organizations to get the best terms.
You can take the initial offer from one bank to other banks or organizations so that they might give a better offer than the first bank. Then you can also take back the offer to the first bank, which might make them feel pressured to give you a better offer.
After comparing different conditions offered by different organizations, you finally decide to accept the offer of one bank. Try to be as calm, determined, and realistic when you decide because signing the contract means that you will start with a long-term loan that might require you to pay for 20-40 years. When you think you are ready, you can go to the organization to accept the offer.
4. Sign the deed in the notary
After accepting the offer, the documentation will be sent to a notary to prepare the deed. The buyer has the right to choose which notary to work with, although most organizations already have their notary partners. You can also empower a lawyer to assist you in the following steps.
This is the last moment for you to clear all doubts, but you cannot re-negotiate terms anymore because it is assumed that you have already done it in the previous steps. Sometimes you can still modify certain terms, but it’s not recommended. Once the loan is signed, there is no going back.
The bank needs to send all documentation required to the notary 10 days before signing the contract
The notary will check if there’s any problem before signing the deed
If there’s no problem, you can successfully sign the deed with all the parties involved.
5. Register in the Property Registry
This step is directly carried out after signing the mortgage contract. The notary will send the notarial authorized electronic copy to the registry online. This is considered an official document, and it has the same value as the paper copy.
Once the process is done, the original document will be for the financial institution, and you will receive a copy.
6. An extra step: you are required to contract home insurance!
In general, if you buy a house in Spain, you are not required to buy home insurance. However, if your house will be mortgaged, you are required to contract home insurance by law.Before signing the contract, the bank usually requires you to buy home insurance and give you an offer. But you don't need to contract the home insurance offered by the bank. Instead, you still have the freedom to compare and choose the best option. Here in Adeslas, we offer you complete home insurancewhich will have you fully covered without any worries.
If you are still in the process of preparing for immigration documents, you can take a look at our expat insurance, a perfect visa insurance option that meets all the legal requirements.
 "BOE.Es - BOE-A-2019-3814 Ley 5/2019, De 15 De Marzo, Reguladora De Los Contratos De Crédito Inmobiliario.". Boe.Es, 2021, https://www.boe.es/buscar/doc.php?id=BOE-A-2019-3814. Accessed 6 Sept 2021.
Our contents will be updated according to the most recent legislation. Last update: 06/09/2021
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