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Thinking about buying a house?

Get ready for a long journey, and hopefully fun, in which you will learn many things you didn't know about the housing market. To make it easy for you, we have prepared a guide with the 9 steps to follow to buy a house.


Make numbers before searching (the most boring part)

Do you know which house you can afford?

That is the first question you need to solve and the answer may be limited to which mortgage you can get.

Does this mean that you must apply for your mortgage before looking for a house? Not necessarily, but you should know your real debt capacity. As a general rule, he thinks that the bank will finance up to 80% of its purchase or appraisal value. You will have to bring the rest out of your pocket.


In addition, you must also take into account the mortgage fee. The ideal thing is that it does not exceed 35% of the income. With a mortgage simulator you can make numbers and see how much you can get based on the value of the house and the installment to be paid according to the term of the mortgage.


Think about what kind of house you want

The most important thing is that you go a little beyond your current needs. In other words, think about what house you might need in the medium and long term, not just what is good for you now.


As an example, maybe now that you are 25 years old, an apartment with two habits is enough. What if in the future the family grows up and you need an office? This is one of the things you should know before buying a house.

Search, search and search (and ask for help if you need it)


Start the funniest part of the process: find the house of your dreams! Take advantage of new technologies and housing portals to cover land. If you need it, remember that there are professionals who can help you in the search and also with the steps you will have to take next.


During that search, do not hesitate to ask and negotiate the purchase conditions. The price that appears on the real estate portals does not have to be the one that finally closes the sale.


Make sure of the condition of the house

You have finally made up your mind! It's time to book the house to make sure it's yours. You just have to go one step further before doing it: make sure that the house has no pending loads. In other words, there are no debts on the house.
You can get this information with a simple note in the Land Registry.

And also of its value.


Here are 10 the most useful tips for buying a property in Spain


That you are convinced of paying €150,000 for the house is fine and that it is really worth it even better. The main problem of overpaying for the house is that the mortgage is granted based on the sale value or the appraisal value, the lowest of the amounts.

If the valuation value of the house is less than the price you have agreed, you can find yourself without a mortgage. You can anticipate this problem by making a prior appraisal of the house or, at least, checking its price in appraisal portals that you will find on the internet.


Signing a reservation contract and a deposit contract

It is easy to confuse both, although they are slightly different. Both are private contracts in which the purchase of the house is agreed and a date is established for the signing of the contract. With both you will also have to pay an amount as a reservation that may or may not be reduced from the purchase price. What differentiates one and the other is the ability to back down. The earnest money contract is the most common and serves to be able to cancel the purchase if, for example, you do not get the financing. In this case, if the buyer cancels the transaction, he / she loses the deposit paid, and if the seller is the one who cancels the transaction, he must return the deposit in double to the buyer. I would recommend you to use our expert service for compiling or checking the reservation contract for your property.


Don't forget about the procedures and additional expenses

Buying a new house is not the same as a second-hand one. To begin with, the taxes to be paid are different. With the first you will pay VAT and with the second the Property Transfer Tax.


What are expenses for buying a house or an apartment in Spain?


Search and choose your mortgage: which one is best for you?

This is one of the last steps to buy a home. You can choose between three types of mortgage:

Variable mortgage. With this mortgage, the installment to be paid will change over time (every 6 or 12 months) depending on a reference index

Fixed-rate mortgage. The interest rate remains unchanged throughout the life of the loan and also the installment to be paid.

Mixed Mortgage. You start paying a fixed rate the first few years, when you need more stability, and then you move to a variable rate.

Do you need help choosing? Do you want more information about each option? At Openbank we will be happy to answer all your questions.

Sign the mortgage and the deed of the house

The signing of the mortgage and the sale is made before a notary. In fact, you will have to visit the notary twice before signing the mortgage loan. On the first visit, buyers will take a test and sign the previous act to verify that they have understood the conditions of the mortgage, and on that visit, the notary will answer all any questions they have about it.

On the second visit, the contract for sale and public elevation of the deed of the mortgage loan will be signed, which will subsequently be presented to the Land Registry, paying the corresponding taxes.


Now you know how to buy a house step by step. You just have to get going.

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  • 2 weeks later...
On 1/17/2023 at 9:41 PM, Olga said:

@Anderson, thank you for the tips, but is it necessary to have own lawyer as it is common in the UK to support the process?

No, not really necessary, but most of the people consider having him / her on-board. There are quite a good adviser to check documents and etc. Sometimes it is useful, sometimes you don't feel so, depending on the situation with the property.

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I'm Spanish Adviser and you can ask me any question related to Spain. Our people speak 🇬🇧 🇺🇸 🇪🇸 🇩🇪 🇫🇷 🇺🇦 🇷🇺.

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Can I get a mortgage from Spanish bank for buying a flat if I'm not living in the country?


My husband and I are considering living in Spain as digital nomads at some point. Neither of us are EU citizens. Before we relocate, we are considering purchasing a flat if possible. If you're familiar with the mortgage loan process at a Spanish bank, could you please tell me about your experience? 

What is the minimum down payment required, and how long will the process take to complete? 

As we are not EU citizens and we do not live in the EU, is it impossible to receive a loan from a Spanish bank?

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@Yapi You can get a loan for buying a flat in Spain as a non-EU and no resident in Spain. The conditions will be different from Spanish residents can have. It is necessary to check with the banks at the moment you're close to the deal, but most likely they will not lend you more than 60% of the price and the interest rate will be variable (not fixed, depend on the Euribor). Not all the nationals are really can pass through the process (sorry, no discrimination, just share what I know) and lots of paperwork required - including income statements, letters from your employer, credit rating from a credit bureau. Everything translated to Spanish.


I leave you a few important links about the topic, so you can study and learn more about mortgages and buying flat in Spain:

Should I buy or rent? Important details about the mortgages.

What is real estate appraisal and how it works in Spain buying a property with the mortgage?

How does Euribor affect monthly mortgage payment?

What are the expenses for buying a house or apartment in Spain?

I'm Spanish Adviser and you can ask me any question related to Spain. Our people speak 🇬🇧 🇺🇸 🇪🇸 🇩🇪 🇫🇷 🇺🇦 🇷🇺.

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I'm considering investing some of my money in real estate, and I'm undecided if I should invest in the UK or Costa Blanca. If I decide to buy property in Spain, what are the regulations and associated costs set by the government? Is it easy to rent out properties? Could I expect a positive return on my investment? We would appreciate any help.

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@Groupy not sure about the UK, I heard the prices have skyrocketed there. The real estate prices in Spain have increased too, but depending on the reasons there are some good deals can be found. The long-term rental works better in big cities and short-lend near the cost, even in small towns, but also in big cities like Barcelona or Madrid. The positive return on investment is possible, but I believe the time of return is about 20 years or even more. However it can provide you with the income for a long time. For the costs - there is a comprehensive guide on the spending for buying real estate in Spain.

I'm Spanish Adviser and you can ask me any question related to Spain. Our people speak 🇬🇧 🇺🇸 🇪🇸 🇩🇪 🇫🇷 🇺🇦 🇷🇺.

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