All About Mortgage loan Spain

Let’s say that you have lost your heart to that lovely Spanish ‘hacienda’ and are desirous of purchasing that property but with the help of a loan. How do you go about securing a mortgage loan Spain for that property? Well, the first obvious step would be to understand what a mortgage is.

A mortgage is the usual way of financing a property in cases where finances fall short of the full price and it is done at the time of the signature of the sales contract before a Spanish notary. It is a contract between the borrower and the lender where the borrower gives the assurance of repaying the debt or loses the pledged property. On mortgaging the property, the loan is given and various mortgage rates can be considered. In Spain, banks have special mortgage loan products designed for non-resident borrowers and the mortgage has to be filed at the Spanish Property Registry.

A mortgage loan Spain works at several angles. The first step is to have the valuation of the property done by an independent and official company to ensure the exactness of the calculated value. This valuation price is used as the beginning for establishing the loan’s amount, the sum to be insured and in case of non-payment, the value of the property to be auctioned.

Depending upon the borrower’s financial health

, type of property and location, the bank will give a mortgage loan up to the maximum percentage of the property’s value. Usually, ten days are given to accept or reject the offer made by the lender which includes principal, fees, interest rates, payment term and interest for delayed payment. If the offer is accepted, the mortgage can be formalized.

The formalization requires the signing of a public deed I front of the public notary. A spanish loan mortgage requires the presence of a legal representative who stands guarantor to the transparency of the transaction as well as the fulfillment of all obligations by both parties concerned. The notary will verify that all facts are accurate and that no burdens or seizures have been placed on the property so that the mortgage can proceed and the bank will be able to recover its loan. All these facts will then be entered into the relevant land registry and the property can become yours.

Buying a home in Spain need not be a complicated process if the above factors are taken into account and many Spanish banks offer attractive options.

Author: STEVE WALDEN