Sometimes foreign citizens who buy or want to buy a property in Spain, do so without knowing the Spanish rules, and that many of the things that in their country are normal or taken-for-granted, in Spain work in a different way.
In today’s article we talk about the mortgage loan and some basic issues that buyers should take into account:
-If you need to obtain the mortgage loan to buy a property in Spain, it is highly advisable that if any private purchase contract signature, or book, etc. condition it to obtain approval of the loan by their bank, pointing out that if not adopted, parties will be returned the money handed over, resolving the contract by mutual agreement. If not so, and the Bank finally does not grant you the loan you can see before a legal claim against her for breach of contract, loss of the quantities delivered, claim for compensation, etc.
-Is very important, to study, compare and check not only the interest rate on the loan, but also in the rest of the terms, conditions and economic commissions, such as: the fee, appraisal fees, commissions early total or partial cancellation, etc. because they can be a large amount.
-Contrary to what happens in other countries, you should know that valuation appraisal that do the Bank, to determine the value of the property, and therefore the amount of the loan granted, does not in principle relevant in your agreement of purchase and sale, and therefore will not affect the price agreed with the seller.
.-In addition, in recent times, banks “invite” their customers to hire a series of insurance, that have an influence on the real cost of the mortgage loan as important as the agreed interest rate. Although legally, if they grant you a mortgage loan you are required to take out insurance on the property, naming the bank lender as benefit, you are not obliged to take out such insurance with the insurance company of the Bank, they can do it with any other. Similarly, banks, offer improvements in conditions, subject to the recruitment of other types of insurance including life, home, etc. Therefore, if the obtaining of the loan is conditional on the hiring of any insurance, it is essential to compare with other similar insurance cost, because the actual cost of loan can be increased significantly.
If you want to sell or buy a property in Spain with professional and specialized advice, contact us.
The information provided in this article is not intended to be legal advice, but it simply transmits information related to legal issues.