Buying an apartment in Spain is not only an incredibly profitable investment, but also private property protected at the legislative level. No one can find out anything about your real estate, and, moreover, confiscate it.
The nuances of the provision of mortgages
Until the last moment, you do not know whether the bank made a positive decision regarding the provision of a mortgage loan for real estate in Spain. The situation is clarified only after the conclusion of the transaction with the seller of the real estate object, and the transfer of an advance amount for him. The advance amount is 15-20% and it is not subject to return if you refuse to buy, or do not receive a loan.
Appeal to the bank is possible only after receiving a buyer for housing. The bank considers your application, and with a positive decision, you receive a binder offer. It guarantees the issuance of a loan. In addition, the ligament proposal indicates the amount of the loan and the main conditions for its provision.
With Spanish banks you can and should bargain. There is always the possibility of obtaining a larger loan amount. Local financial institutions willingly offer real estate, which is in their pledge.
For any bank that provides a loan, the client’s solvency is important. The main documents confirming the viability of the borrower are: passport, personal income tax certificate, income certificate, documents for other assets. All papers should be translated into Spanish, and notarized.
Before you provide an income certificate to the bank, make sure that the monthly fee to the bank will not exceed 30% of your total monthly income. According to the legislation of Spain, this item should not be violated.
In Spain, you will need to get an identification code of a foreigner. It is issued by a police department for working with foreign citizens. The cost of this document is 60 euros. In addition to money, you will need to provide a copy of the passport with a visa. It will also be necessary to take a picture.
List of documents for the Spanish Bank
International passport; originals and copies of documents confirming solvency; an identification code of a foreigner; copy for the merchant; a copy of the document confirming your transfer to the seller of real estate; The declaration of form P60 on the payment of income tax.
After a month you will know the decision of the bank.
Additionally, you will have to pay for the costs associated with the execution of the loan. Their size is about 1-2% of the loan amount. With untimely repayment of the debt, penalties in the amount of 25% per annum are applied from the amount of non -payment. It will be necessary to pay for utility services monthly, and annually pay real estate tax. Its size ranges from 0.15-0.5% of the actual cost of housing.