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What is needed for the Application:
Documentation
concerning the buyers:
Documentation on income:
In the case of employees: last 3
payslips. P-60, last income tax return; evidence of other income (if
applicable). In the case of self-employed: latest
income tax returns (IRPF), accountants references and financial
statements, evidence of any other income ( if applicable)
Documentation relating to the
purchased property:
Note Simple-current extract of the
Title Deeds from Property Register. A copy
of your reservation or private purchase contract. Purchased Property. Outstanding debt
certification of previous mortgages to be redeemed. Latest local annual property tax
statement (IBI).
The credit analysis
The two main factors that are
taken under consideration from the financial entities:
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The applicant's ability to
pay back the loan, the monthly repayments amounts should be between
30% to 40% of the net monthy incomes.
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Some Banks now accepting
up to 50% of the net monthly income.
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The loan to value ( LTV ),
the percentage represented by the credit with respect to the appraisal
value of the property (can change from bank to bank).
The mortgage Deed
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The financial entities
provide a draft copy of the mortgage deed this is a 'binding offer'
which is a summary of the main features of the mortgage, including the
financial data.
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Once this has been agreed,
then the next step is signing the Mortgage Deed and the Purchase Deed before the Public
Notary, once both documents are signed they are subsequently recorded in the Local Property Register.
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