like its economy, Spain’s property market is on the up, and it has become the best time to buy in years.
But before approaching lenders or banks to finance your Spanish dream, read Finance Bureau’s Tancrede de Pola’s top ten must-do’s.
1) Hire a broker
Much better deals are to be had with someone who knows the business inside out fighting your corner.
2) Keep a low profile
Don’t apply for new credit around the time you are trying to get a mortgage, you may be considered a greater credit risk if you do.
3) Have your finances in order
When applying for a mortgage it is imperative that you can clearly demonstrate that you have the funds (typically 30% + closing costs) available for completion.
4) Be prepared
Make sure you have all the relevant documents you need, bank statements, NIE, proofs of income, credit report, the works, the Spanish love their documents.
5) Look the part
Start running your bank account as if you already have a mortgage at least three months before you apply – Avoid excessive spending, cut out subscriptions and memberships that aren’t essential and don’t splash the cash on betting or gambling.
6) Lawyer up
You need a good team behind you to avoid being cheated, this includes a good estate agent and a lawyer.
Try to improve your credit score before applying, one tip: put all expenditures on a credit card and pay it off in full each month, ensure you are on the electoral roll.
8) Best product
Have in mind the type of mortgage you want. Your broker will advise as to the most suitable, given your circumstances.
9) Know your limits
Determine how long you want your mortgage term to be. You will pay less each month the longer it is, but bear in mind you will be paying more interest.
10) Be ready
Get a copy of your credit report to make sure it is correct and correct any errors, and to make sure you are not unpleasantly surprised if it’s bad news.