How long does the bank in Spain take to grant a mortgage?
Are you thinking of buying a home? Do you need financing to be able to acquire it?
It is important to mention that the term of granting the mortgage is not the same as the signature. The first case refers to the time the bank needs to respond to the client about whether or not it approves their request.
However, the signing of the mortgage takes place after a few weeks. Generally, it is usually one month, although it can take up to three months, depending on several factors, such as how long it takes for the bank to appraise the property.
Steps taken by the bank to grant a mortgage
- Apply for the loan: it can be done 100% online. It is recommended to make the request in several entities to compare offers and speed up the process.
- Home appraisal: the time it takes to perform depends on the appraiser and how he has the visit agenda. In general, you receive the appraisal about two days after the visit to the home by the appraiser, since its validity is only for months.
- Obtaining the Nota Simple: from the Property Registry will not take you more than 24 hours. You can also request it online.
- Sending documentation: some banks accept delivery by courier or email and others require delivery to the office. That can lengthen the time it takes to grant a mortgage.
Study process of a mortgage loan
Once the mortgage application has been received, the financial entity checks the Registry data (administrative simple note), the value of the appraisal and the documentation that you have presented, which must coincide with the one that you initially provided.
In this phase, the most important part is the analysis of the level of indebtedness and the payment capacity. For this reason, it is very important that before embarking on the purchase of a new property you always ask yourself “what flat can I buy with my salary?”. This information is assessed by the risk management department of the financial institution.
In this process, the bank performs the following steps:
- A query to the CIRBE (Risk Information Center of the Bank of Spain).
- An assessment of the borrowing capacity of the applicants (solvency).
- An assessment of the risks that the granting of the mortgage has for the entity.
- A commercial assessment of whether or not you are interested in granting that mortgage.
Last steps to get the mortgage
Once the mortgage has been granted, you must take a few final steps to make the loan effective:
- Once the financial institution approves your request, it will send you a binding offer with all the conditions and clauses that will appear in the deed of sale. It is called FEIN or European Standard Information Sheet and is valid for ten days.
- This offer must be reviewed with a notary who will verify that you fully understand the conditions of the loan and, above all, that it does not include abusive clauses.
- Finally, an appointment will be made at the notary to sign the deeds with the presence of the seller, the buyer and the bank representative.
The mortgage is a very important decision when buying a home. As experts in the real estate sector and, above all, as buyer agents that we are, our advice is that you always let yourself be advised by professionals who know which mortgage is best for each person.