Spanish banks provide loans for the purchase of property to any person or entity that meets the financial criteria of the bank. Mortgages in Spain is quite affordable for foreigners, and interest rates are very different from the Russian. But during the crisis, because of the frequent cases of overdue loan or rejection of property for economic reasons, have tightened requirements to provide a document that should prove your financial trustworthiness. In addition, the increased time for consideration of the application for a loan from 2-3 weeks to 4-6. Spain has no standardized requirements for the package of documents, as well as their design, so these requirements may vary from bank to bank. This applies in particular to the issue of translation of documents into Spanish. Such transfer may be made:
1. In the Spanish embassy or consulate in the country of residence of the applicant.
2. accredited translator in the country of residence asking for a loan. It will need to notarize and put an apostille.
3. sworn translator in Spain. This method is the easiest and most common.
Oddly enough, but getting a mortgage in Spain for non-residents of this country is a simpler procedure than by the Spaniards. Spanish banks do not require foreign nationals to provide a guarantor.
Mortgages in Spain granted on the basis of the following documents:
• Contract backup or lien on property in Spain you buy. This is a private contract that is signed between the seller and the buyer (may be issued by a notary), it represents the amount of collateral and specifies the maximum period of registration of the transaction of sale in the presence of a notary. Usually deposit is 10% of the transaction amount.
• Information on income for the preceding year and the last period of the current year. May be asked for a few years, if you have any doubts about the value of income in the last year.
• Extract / extracts from the personal bank account / accounts opened in their own country or in other countries, indicating the movement for the last six months or a year, depending on the bank. They are intended to show that the money into the account regularly received.
• Extract from the bank of a depository accounts. • Letter from employer stating position, salary, hours of work in the company, with the signature of the head and chief accountant, as well as with the company seal. At the same time, the more experience in one place and term labor contract, the better.
• If the customer is the owner of the company, require a certificate of registration of the company and the relevant pages of the document, which states that you are the owner or co-owner. Not bad will specify the annual income of the company, even if the company does not pay dividends.
• If you have your own homes, it is desirable to present a certificate of registration of property rights with an indication of the total area of the object, the absence of any debts.
• The identification number of the foreigner (NIE), which is made on the spot in Spain. It can be obtained at the place in the national police, for this you need a valid foreign passport with a Schengen visa and stamp of the passage of border passport control at the border of Spain. Expiration date of the passport must be at least 6 months. If you come to Spain in transit through other European countries, and there will be no entry stamp, obtaining NIE numbers can be quite complex, unless you do not have Spanish Schengen visa.
• A valid foreign passport. You will also need a copy of all the pages, or, at the discretion of the bank, the first page, the page with the visa and entry stamp pages.
• 1-2-page summary, a description of any form of data specified in the documents provided to them.
If the loan is taken for a few people, all of these documents are available from each individual. Do not forget that, according to the norms of Spanish banks, monthly quotas to repay a mortgage loan should not exceed 35-40% of the net profits of all mortgage holders. They care that would be a loan taken by you, not a burden for your family budget. Mortgages in Spain issued for 5-30 years depending on the age and number of applicants. For persons who are not citizens or residents of Spain or the European Union, the amount of the mortgage, now is not more than 60% of the appraised value of the acquired assets or the purchase price, which will be listed in the "Escritura" (notarial deed). In addition, the amount calculated by the bank based on a smaller value. That is, if the appraiser estimated at 1,000,000 and the seller wants to 1 200 000, you will be given 60% of 1 000 000. And if the appraiser estimated at 1.2 million and the seller wants 1 million, you still get 60% of the 1000 000. Before the crisis, interest rates were calculated based on the appraised value. Estimated cost - calculation of property value produced by the appraiser (tasador). This procedure is not only mandatory, but also useful: thanks to her buyer can know the real condition and value of the acquired assets. The costs of assessment paid by the buyer. Property prices in Spain fell for the third consecutive year, the data of previous estimates obsolete. Thus, the validity of the conclusion of the appraiser is only three months. In its work, the evaluators take into account the real situation on the market, the average price per square meter of property of the same type in the region, the dynamics of sales of similar objects, status and more. Cost of services appraiser ranges from 180 to 550 euros.
Floating interest rates on mortgages fluctuate and currently account for about 3.5-4.8% per annum, fixed at the level of 5.5-7%. Interest rates depend on the bank, as well as additional services, which gives you a bank. So if you have a business in Spain and you will keep in the selected bank account and pay there wages to their employees, it can significantly reduce the rate on the loan. Also floating interest rate depends on the rate Mezhbanskogo lending (Euribor), which is now at historic lows (below 0.5%). So, I advise you to pay attention to the banking component, as well as to the percentage of early repayment and interest on arrears.
Getting a mortgage in Spain is made by a notary. As a rule, the notarial deed of sale and the notarial mortgage agreement is signed at the same time. For many banks, life insurance and property to be acquired is imperative. If the loan is issued to a few people, the life insurance demand for the main borrower (his name comes first in the contract). In the first year of the mortgage insurance company and insurance rules designate the bank. After that, you can choose the insurer themselves, but to agree with the bank conditions.
The process of obtaining a mortgage loan on a property in Spain:
• Opening an account in a Spanish bank. The bank will need to provide proof of the origin of this amount, or to provide a guarantor, which the bank trusts. Status Marbella will help you with opening an account. • Evaluation of the acquired property. Typically, the process takes 6-12 days.
• Submission to the bank of a full package of documents translated into Spanish.
• Sending documents to the central office for a decision on the amount of the loan.
• Transfer money from his client's personal account in the country of residence to a personal account in Spain the difference between the purchase price and the loan, as well as the additional amount that will go to pay the costs (taxes, notary and registration fees, commissions, insurance). An important factor is the transfer of money to a personal account to review documents in a central credit department.
• If approved, the signing of notarial documents (deed and the mortgage contract) and their registration in a public register.
In fact, buying a home loan in Spain, and in any place, not the best idea. The bank you will have to prove their solvency and viability. As a joke Comedy Club, you have to prove to the bank that the loan you like and do not need. Also, do not forget that taking a loan you overpay and the final cost of the object can be more than the amount for which you can sell it in the future.
But if you do decide to buy a property in Spain, with the involvement of credit, we've got you covered!
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