Process
Stages
Having gathered the necessary documentation for your application your file can be packaged and submitted to the lender.
Once submitted a lender shall provide initial feedback in approximately three days, there may be questions to clarify, once answered the file shall be sent to the bank´s underwriting department for an answer to be issued within 3 to 5 days.
Once the financial approval is in place the current account can be opened for the valuation fee to be transferred and the valuation can be instructed. From the moment the property is visited the valuation report shall take approximately 5 days. Once received by the bank the report is reviewed to confirm it is satisfactory and the mortgage offer can be issued for completion.
Do I need a current account with the lending bank?
A current account must be opened with the bank that is granting the mortgage.
It is into this account that the valuation fee must be transferred and the balance of funds for completion must be sent to, it is also the account that the mortgage payments shall be taken from during the duration of the mortgage.
In Spain the banks act as the collectors of expenses and pay the purchase deed taxes and costs on your behalf. Once the mortgage is under offer the bank sends your lawyer the provision of funds, this is the estimated breakdown of costs of the transaction. Once the deeds have been registered at the land registry and surplus funds are credited to your account.
What are the completion timescales?
When considering the timescale for completion it must be had in mind that the signed mortgage offer must be filed with the notary of your choice a minimum of 10 days before completion, within this time an initial visit takes place to the notary (in person or via power of attorney) for the notary to confirm your understanding of the commitment the mortgage entails.