We will easily guide you through the complex process of mortgage financing in Spain explaining how much you can borrow from a Spanish Bank, how much it will cost you, the cash deposit needed, and exactly what documents you will need.
Being fully prepared financially before visiting Tenerife will enable you to negotiate with sellers in the knowledge you are in the strongest position to buy and have the ability to move quickly.
I am going to share with you some of the most important factors when buying property and if you think you will need a mortgage, then the following information I am sharing with you, will put you at the front of the queue for the purchase of your chosen property. There is so much to consider when you’re looking to purchase a new home – from location, to wish-list and of course, cost and affordability is at the top of the list. Buying a home is a major investment, and most of us aren’t paying for the whole thing up front in cash. When you get a mortgage pre-approval, you’re able to set your budgetary limits and make sure that any home you’re looking at is a home that you will be able to finance and most important of all, it will show the vendor that you are not a time waster, and that you can move forward quickly to purchase the property in question.
I´m sure that you are aware that there are two types of markets: buyer’s markets and seller’s markets. In a buyer’s market, inventory is high and demand is low and you have a lot more lee-way in terms of the purchasing process. In a seller’s market, however, inventory is low and demand is high, and buyers need any advantage they can get on their side if they want to stand out from the competition. If you’re looking to buy in a seller’s market, then one of the advantages that you’re definitely going to want is a mortgage pre-approval. You may be asking yourself ´why is that?´. Let me explain – if there are two buyers making an asking price offer on a home and only one has a mortgage pre-approval, who do you think the seller is going to be more likely to go with? In almost all cases it’s going to be the buyer with a pre-approval, since there’s a lot less risk to the seller of the deal falling through due to lack of available financing.
In addition to making you a more attractive buyer, a mortgage pre-approval also lends you some flexibility in terms of bargaining and negotiations. That’s because sellers who know that a buyer is already qualified for the offer amount may be more likely to make some compromises if it means the sale is a sure thing. A prospective purchaser who has a pre-approved mortgage in place will always have the upper hand over someone who doesn´t. This becomes even more useful when you want (as an example) certain refurbishments or changes to be made to the property, pre-sale, or if you want the cost of these changes to be deducted from the asking price of the property, then having a pre-approved mortgage will make it much more likely that you will achieve what you are asking for.
If you’ve already got your pre-approval in hand, you’ll be able to speed up the buying process so you can move in to your new home earlier than you might have been able to otherwise. Securing financing is the first thing that happens when you start to buy a home. With a mortgage pre-approval, financing is already secured and you can buy faster. This is a particularly beneficial advantage if the seller is also trying to sell sooner rather than later.
We work with all the Spanish banks and are able to provide you the best rates available in the market today.
Thankfully, pre-approval can sometimes take as little as 24 hours if all your documents are to hand and your information checks out. When you’re self-employed, pre-approval can take longer.
Applying for a mortgage pre-approval is free, and doesn’t commit you to a lender. However, getting pre-approved does hold the mortgage rate you are offered for 120 to 160 days. This means you’re protected if interest rates rise while you’re shopping for a home and equally, if interest rates go down during this time, your lender will honour the lower rate.