Last week’s post was about the necessary documents to sell property so today’s one is about the necessary documents to take out a mortgage in Spain, which are requested by banks and financial institutions as part of your application’s evaluation process.
If you are still unaware of the documents and requirements you must meet to access mortgage financing, Tecnotramit wants to help during this process. Requirements can vary slightly from one institution to the next and according to your specific situation, but in general the following are necessary.
1. Identification document: You will need your ID card (Documento Nacional de Identidad, DNI) if a Spanish citizen. If a foreigner, valid passport and foreigner’s ID card (Número de Identificación de Extranjero, NIE) are required.
2. Proof of income: You must provide proof of income to demonstrate you have enough financial capacity to face mortgage payments. These include latest payslips, annual tax returns, or any other source of income you may have.
3. Employment contract: If you earn a wage, a copy of your employment contract may be required to verify job security and a regular income source.
4. Declaration of assets: Some institutions may ask for a declaration of assets and current properties.
5. Debt report: You will have to provide information about your current debts, such as personal loans, credit cards, and other financial obligations.
6. Bank statements: Your last bank statements may be requested to evaluate spending habits and savings.
7. Property valuation: Banks normally request an independent appraisal to determine the value of the property you want to take the mortgage out on.
8. Title deed copy: You will have to include the title deed as part of the process if you already own the property you wish to take the mortgage out on.
9. Debt and charges certificate: A certificate issued by the Property Register will be requested to confirm there are no pending debts or charges on the property that may affect the mortgage.
10. Life and/or home insurance: In some cases, the bank may require a life or home insurance to be taken out to support the loan.