Applying for a Spanish mortgage: 4 steps

Applying for a Spanish mortgage is certainly possible for Belgians and Dutch people. You do not need to be resident in Spain either. An application can be made from your home country. In this article, you will find more information on the steps to apply for a mortgage in Spain for the purchase of property.

The video below is a summary of this blog created using artificial intelligence.

Step 1. The Spanish bank's financial analysis of your situation

In the first step, the Spanish bank will analyse your financial situation. Bear in mind that the bank will request your financial information (e.g. pay slips, tax return, proof of own funds, certificate of indebtedness, etc.) in English, French or Spanish. We can put you in touch with a translator for this purpose.

Step 2. Valuing the property

After receiving preliminary approval on your financial situation, the bank will appoint an appraiser. This appraiser will make a valuation of the property. Based on this valuation, you will be able to borrow. Typically, you can borrow 50 - 70% of the appraised value. 

Note: The valuer also takes into account the legal situation of the property. For example, a rustic property may consist of several plots. An appraiser may then estimate each plot separately, which may result in a lower value.

Read more about the legal checks when buying Spanish property.

Step 3. The credit proposal

If the appraisal report was delivered, you will receive a concrete credit proposal: the "FEIN" (Ficha Europea de Información Normalizada). In this document, you will find the terms and conditions of the loan. If you agree to the proposal and a notary is appointed, the bank will upload the credit proposal on the notary platform. After this, a cooling-off period of at least 10 days will start. Within the cooling-off period, you cannot sign the purchase deed.

Find more information on the usual terms and conditions of a Spanish mortgage here. 

Step 4: execution of the deed

If you agree a date with the seller to execute the deed of sale, you will first need to complete an information memorandum (Acta de Transparencia) to be signed at the Spanish notary. The notary will then explain the terms of the loan to you. Only after 24 hours have passed can you sign the actual deed of sale and mortgage deed.

These three signings (information memorandum the purchase deed - the mortgage deed) can be done with a notarised power of attorney. So you do not need to be on site to finalise the purchase.

Learn more about a notarised power of attorney here.

What is the processing time for a Spanish mortgage application?

In particular, the first and second steps may take some time. The financial analysis usually takes 2 weeks after receipt of all requested documents. The valuation can also take two weeks. After that, you should allow for +/- 2 weeks for the preparation of the credit proposal.

Find the pitfalls of a Spanish mortgage here.

What are the costs of a Spanish mortgage?

Under Spanish regulations, most costs are borne by the bank. Consider, for example, notary and registration fees and stamp duty. The costs of the appraiser are yours. In practice, however, the bank will pass on some administrative costs.

Read more about the cost of a Spanish mortgage.

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