Tancrede de Pola (OP Columnist)
IT can be more than a chore to find, negotiate and sign a mortgage in Spain – it can be the single most important financial decision you make in the country.
It becomes doubly difficult if you are not from Spain, and are not used to the steps you have to take and the pitfalls to avoid.
One of the biggest challenges for an expat looking to get a local mortgage is to be aware of the different documentation required by banks to make sure everything is in order.
Make a mistake here and it could cost you time and money – as well as a huge amount of hassle – at best or, an outright rejection, at worst!
To give you an idea of the complexity we will take a closer look at the documents required for a mortgage application in Spain.
We need to point out that there is no standard documentation for all banks when it comes to applying for a mortgage. But there is a general pattern including some documents that just about every lender will require, whether applying as a resident or non-resident, so that it can analyse the application and make a decision on whether to lend or not.
Adding another layer of complication is that these will vary according to whether you are employed, self-employed or a company owner but, in any case, everyone will need at least the following:
· A valid ID card of each applicant. If you have a green NIE card, you will also need to provide your passport
· Employment record of each applicant (this must be dated within the previous 30 days…for resident clients this is called a vida laboral
· Your income tax return for the last 2 years.
· Account movements of the last 3-6 months.
· Credit report, from the country of residence.
· Rental contracts for any existing buy-to-lets.
· Nota simple of property being purchased.
· Last three paid receipts for all existing Spanish mortgages
In addition, employees will need to show their three most recent payslips for each of the applicants and their employment contract.
Resident Self-employed people will also have to show their last four quarterly income tax and IVA returns.
This is not an exhaustive list – many more documents may be needed depending on your marital status and the individual lender.
Do not despair however! At The Finance Bureau, we have many years of experience in helping people find and successfully apply for mortgages to fit just about any circumstance.
We can help you navigate the red-tape as well as find you the most suitable product for your personal needs.
The Finance Bureau
Centro Comercial Guadalmina II,
Oficina 7, Guadalmina
San Pedro de Alcántara 29670, Spain
Telephone: +34 952 801 401
Mobile: +34 666 709 743
E-mail: admin@thefinancebureau.com
