The new Regulatory Law of Real Estate Credit Contracts, in force since June 17th, imposes new limits on mortgage conditions. However, it also modifies the process to apply for them. For this reason, the financial comparator HelpMyCash has shared a new free guide with several steps to follow when requesting a mortgage loan from the moment you visit the bank until the operation signing. With these 3 tips to get mortgage in Spain you’ll be able to become the new owner of one of our luxury properties for in Barcelona.
Ask for information and compare various banks
The first recommendation of the guide is to not limit your research only to your own bank. You could find better conditions with another entity. Analyse several advertising offers to assess which mortgage could be more convenient with at least three other banks. You can look up their websites and window display adverts. Also, they advise to use a mortgage loan comparator to save time. Indeed, this tool allows you to consult all the products on the market without leaving home. When comparing the offers, it’s important to look at both the interest applied and the combined products necessary to achieve it or in commissions.
Once you’ve selected several offers, you need to contact each bank. You can either go to the office or request information online. Ask for the Pre-Contractual Information Sheet (Ficha de Información Precontractual or FIPRE) to each one of them. This document should show the generic conditions of the mortgage, broken down into different sections established by the new law: interest rate, commissions, linked and combined products, consequences in case of default.
If the conditions offered by one or more banks seem interesting to you, the next thing to do is to deliver the documentation you’re asked for (payroll, income statement, bank statements). If you don’t have it, you must also order an appraisal of the home through an approved agency; an operation that you can manage through the entity itself.
The bank will send all the information provided to its Risk Department. It’ll analyse your profile and approve the operation if you meet the requirements.
Study the personalised offer
After approval from the bank, the latter must send you a personalised offer as well as some documents. One of them is the European Standardised Information Sheet (Ficha Europea de Información Normalizada or FEIN). It’s a new document that replaces FIPER (Fichero de información personalizada). It contains the financing conditions offered to adapted to your profile. The FEIN is of a binding offer for a minimum of ten days. It’s advisable to learn its content before meeting the notary of your choice. You’ll do an exam the day prior to the signature day to check that you understand what you’re going to hire. If you don’t pass that exam, the notary can’t authorise the mortgage deed.
You’ll be questioned about the conditions of the future of your mortgage. But don’t worry the notary will explain them to you and clarify any possible doubts.
What will also be verified is if the bank also provided you with the following documents: the copy of the contract (whose content must match that of the FEIN), the Standardized Warning Card (Ficha de Advertencias Estandarizadas or FiAE) with the subtlest mortgage conditions, the breakdown of the costs of constitution that each party pays (by law, now the client must only pay the appraisal and its copy of the deed) and the insurance conditions offered to you. If the mortgage is variable, you also have to facilitate the calculation of the instalments in several scenarios of evolution of the index to which it is referenced (usually the Euro Interbank Offered Rate or Euribor).
You’ll be asked if you’re aware of you rights (allowed to reimburse earlier than planned or to change bank) and obligations (to pay fees, etc…).
Be ready for the exam as if you fail it, the notary won’t authorise the credit deed and you’ll have to start the process again.
Apply for a credit way in advance
According to the HelpMyCash’s guide, this entire mortgage acquisition process usually takes between one and two months, depending on the rush the bank takes. Therefore, it’s advisable to determine a longer reservation period when signing the property deed to make sure to have enough time get the financial support.
Therefore, you should start looking for a credit before your next home for these reasons.
According to your profile and economic situation, the bank could lend financial push you need.
Consequently, you’ll know what dwelling you can afford according to the amount of money the bank is willing to provide and your savings.
You won’t be so overwhelmed by the expiration of the reservation. You could sign the reservation or deposit with the assurance that you’ll get the financing before the deadline agreed with the seller passes.
Some extra tips to get mortgage in Spain
If you follow these tips to get mortgage in Spain, you’ll officially become the owners of the acquired property and the holders of a mortgage on it. It must be said, however, that the registrar can’t authorise registration if the credit agreement contains any clause considered abusive by the courts.
If the offer seems to be improved, this is the moment in which you can try to negotiate with the bank to apply to better conditions. And if it seems acceptable, you’ll have to make a provision of funds (usually 30-32% of the price of the property) to pay the mortgage deed and the sale fares plus the part not financed by the bank.
Your new dream home in Barcelona
Catalonia attracts numerous investors in properties every year and Barcelona is one of the most sought-after cities among them. Its majestic art nouveau architecture is one of the main points of attraction, which stands out from other Spanish municipalities. To comply with the demand and expectations of our current and potential clients, our luxury properties to sale in Barcelona echo with the fabulous architecture of the Catalan capital and offer the dream home that you might be looking for. Visit our website www.chicroomproperties.com and browse our catalogue to find your future home.