Choosing a mortgage is one of the most important steps to take if we need financing for our brand new property. We will not talk here about interest rates or institutions. We will only try to give a small summary of the steps and times necessary from the moment you walk through the door of a bank until you walk out the door of the notary’s office with the keys to your apartment. Here we go!
- Choosing an entity: of course, this is the most important step. Each one will apply an interest rate (fixed or variable) and conditions (need for additional insurance, for example). Take your time in choosing the right institution, as you will have many years of relationship with it. Also, at this point, you can ask for the help of a financial advisor. They will charge you for their services, but they will help you to choose the most suitable one or the one with the best conditions, which will be more profitable in the long run.
- Appraisal of the property: once you have decided, the time will come to appraise the property. From the appraised value, the bank will “leave” you more or less money. The rest, you must put it yourself with your savings, personal credit, etc… In about 2-3 weeks from the granting of the mortgage, you should have the visit of the appraiser, and in 1-3 more days, the result of the appraisal.
- Make a provision of funds: in a separate account you must deposit the money that the bank will not lend you, together with what is necessary to pay notary fees, taxes, etc…
- Sign the European Standardized Information Sheet (FEIN): this is where the financing conditions offered to you appear. Generally speaking, this offer is binding for 10 days, and you will not be able to sign the sale and purchase before these 10 days after receiving it. You will have it 10-14 days after the appraisal, if everything is correct.
- Signing the Complementary Precontractual Information Document (DIPREC): optional, only done in Andalusia.
- Sign the transparency act: it is an act where the same notary chosen for the signature of the purchase and sale will be in charge of explaining all the details of the mortgage that you are going to sign and, at the same time, to attest that the signatories are in full faculties to understand what they are signing.
- Signing the sale and purchase: The big day has arrived! After 5-6 weeks, everything will be ready to sign the sale and become a long-suffering owner.
