Buying property and getting a mortgage in Spain

Five money-saving tips for buying property and getting a mortgage in Spain

Acquiring a new property is one of the most important decisions we can make in our lives, not only because of the financial burden involved, but because of the emotional commitment behind it. In Mortgage Direct SL we understand this, and for that reason we have elaborated a  guide to avoid common pitfalls for property buyers and mortgage borrowers in Spain.

Below you will find information on the five steps to follow when buying property and getting a mortgage in Spain. These tips will help you save time and money, but, above all, they are a clear guide in the midst of so much confusing information.

1. Start by knowing how much you can borrow

Keep in mind that to calculate your level of indebtedness only 30-35% of your income is taken into account so that the money you could receive from the banks could be much lower than expected. This income must be proven through tax returns and bank accounts, the Spanish mortgage market has different characteristics than the rest of Europe.

Keep in mind that to calculate your level of indebtedness only 30-35% of your income is taken into account so that the money you could receive from the banks could be much lower than expected.

2. Check your credit report

If the score is Fair, it can be difficult to get a good mortgage, be sure to improve your credit rating before starting the process. Keep in mind that you can not compare the rate and conditions of your home with Spain, with the conditions present in the country of which you are a resident, pay taxes there and where you have your mortgage, receive your income. This is not the case for your second resident purchase. Then you are a different risk. Then the rates are a higher standard.

3. Check the classification of the property - Is it rustic or urban?

Not all banks are willing to lend in rural properties, check the property in which you are interested in what classification you have and which banks in the area are willing to lend for this type of property.

4. Hire a good lawyer

Maybe the initial perception we have of hiring a lawyer is that it is an unnecessary expense, something that we could save, but in the long run can save you a fortune by preventing you from buying a property with legal problems.

Once you find the property, do not pay any deposit until your lawyer tells you it is safe to do so.

5. If you are outside the EU currency, request an MD for the currency exchange process

Ask MD to open an account for you and start transferring money to Spain when the exchange rate is good, many people leave at the last moment and have no other option of what rate they are getting and lose thousands in the process. The purchase process can be complicated and confusing, so a good mortgage broker is the key to keeping the operation together and keeping the banks, real estate agents and the lawyer updated.

As a final recommendation, remember to have a good MD, In Mortgage Direct SL, in addition to making the mortgage processes are as simple as possible, freeing you from numerous headaches, through us you get lower rates than the standard and discounts additional

 

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Bozena Brunowska

Mortgage Advisor @ Mortgage Direct

MORTGAGE ADVICE