Obtain a mortgage loan (steps, timescale &procedure):

Spanish finance to purchase real estate:

In spain the obtention of finance for purchase a residencial property is applicable subject to the status of the client and other factors like result of the valuation report.
Basically for residents is possible to obtain between 85% to 100% finance and for non residents between 60% to 85% finance.
 
Application:
The application will be handle between the client and our staff over the phone. Our firm will get an approval in advance in 24 hours.
 
DOCUMENTS & APPROVAL:
After receive the approval in advance of the finance required the following paperworks has to be presented in to the bank for final approval in 48 hours. (see list of required documents attached)



SURVEY:
Once the mortgage its approved the valuation report has to be order. This procedure takes between 3 to 4 days until receive the report in the bank.
 

COMPLETION:
As soon as the valuation report arrive to the bank the procedure for completion start and will take between 3 to 4 days to organize all the deeds and certificates in to the public notary, payment of taxes and duties, etc.
 
IMPORTANT NOTICE:
It can help if the Lawyer has Power of Attorney for the client in the case where they would need to make a special journey to come over and sign.  This is best done when they are ready to reserve a property.  It will also give him the power to get for them their NIE number which they will of course require prior to FULL approval.
 
 
 
EXAMPLE OF PURCHASE A SECOND HAND PROPERTY WITH A MORTGAGE LOAN
PRICE: 230,000 euros
MORTGAGE: 196,000 euros
VALUATION: 280,000 euros
% OF FINANCE LTV: 70%
% OF FINANCE LTP: 85%
TERMS: 30 years
INTEREST: euribor (1.5%) + 1.5%
INTEREST REVIEW: every 12 months
FIRST YEAR INTEREST: 3.5%
EARLY REDEMPTION FEE: 0.5%
MONTHLY PAYMENT: 826.34 euros
COSTS: 29,000 euros, as follows: (this is a 12.6% of the purchase price)
Deeds, land registry and gestoria against the purchase: 1,300 euros
Deeds, land registry and gestoria against the purchase: 1,320 euros
Stamp duties against the mortgage: 2,800 euros
ITP 7% (VAT): 16,100 euros
House insurance: 280 euros
Bank fee 1.5% : 2,940 euros
Finance fees 1% : 1,960 euros
Legal fees 1% : 2,300 euros
 
BALANCE: 230,000 euros + 29,000 euros - 196,000 euros = 63,000 euros
 
With all applications we require copy of passport and NIE numbers.
(If the client does not have yet an NIE number we can handle the procedure to obtain it.)
Employee status
• Last Tax declaration / P-60 / Company tax certificate for end of the year about the employee
• Last 3 Salary slips
• Last 3 month Bank accounts
• Experian / Credit report.
• Bank reference letter (All nationalities except UK and Spain)
Company or self – employee status
• Last 2 years tax returns / tax declarations
• Last 2 years accounts (All nationalities except UK and Spain)
• Accountant certificate about assets & liabilities for the last 2 years (All nationalities except UK and
Spain)
• Last 3 months bank accounts
• Experian / Credit report of individuals
• Bank reference letter (All nationalities except UK and Spain)
Documents to present in other language than Spanish or English have to attach a sworn
translation for the bank in the Spanish language.