How long does it take to get a Spanish mortgage as a foreigner?
Researching the available options is an important step that requires a considerable amount of time, especially since you don't want to rush into making a hasty decision. Keep reading to discover how long you can expect this process to take.
After receiving a pre-approval for a mortgage loan to maximize your property budget, you might be curious about the duration of the remaining process and the following steps involved.
Keep reading to learn what to expect from the loan process at a Spanish bank as a non-resident.
How long is the mortgage process in Spain for foreigners?
The mortgage pre-approval process with Spanish banks generally follows a timeline where there's a 14-day period from submission to receiving a formal offer.
After this offer, there's often a negotiation period, typically lasting around 15 days, to finalize terms and conditions. Subsequently, it takes about another 21 days before the signing can take place at the notary office.
We will explain each step in the following section to help you better understand everything this process involves.
The first step is to create an application with Homevest, where you can upload your paperwork easily. Continue reading to learn about the required documents for a mortgage application.
Negotiate offers with banks
Estimated time: 15 days
Negotiating with banks can help you get better interest rates and lower fees. A strong credit history can provide leverage, and being informed about market rates and terms from various banks strengthens one's negotiation position.
Learn more about the mortgage rates in Spain for non-residents and discover the latest deal on the market to help you negotiate the best price.
Submit the formal application
Estimated time: 1 day
Now that you’ve already gathered your documents, it's time to apply for an official offer.
Risk approval
Estimated time: 14 days
After submission, the bank reviews the application, which can lead to approval, additional queries, or denial. Ensuring accuracy and prompt responses to questions can expedite the process and increase the chances of approval.
The bank’s risk team assesses the applicant’s ability to repay the loan by examining credit scores, income, employment history, and the property's value. Lenders also consider the down payment size and broader economic conditions.
In some cases, the risk team will approve the mortgage with different terms than was initially proposed. They may also request additional documents.
Property survey
Estimated time: 5 days
This property survey ensures that utilities and taxes are properly checked and verifies the property's structural integrity.
The survey remains valid for 6 months after it has been completed.
While banks may offer convenient survey services, sometimes for free or at a cost, an independent appraisal provides a more impartial assessment and enhances the chances of getting a valuation that matches your purchase price.
Sign the formal offer
Estimated time: 1 day
The bank issues a formal mortgage offer after evaluating the applicant's credit history, income, and other financial aspects. This binding document (oferta vinculante) outlines the loan's interest rates, repayment conditions, duration, and related fees.
Gestoría (bank administration)
Estimated time: 10 days
A gestoría in Spain assists with the administrative aspects of mortgage processes, bridging the gap between banks and clients.
Many banks recommend specific gestorías to ensure smooth documentation and compliance. While their services come at a fee, they offer invaluable assistance, especially to non-residents, by simplifying paperwork, facilitating translations, and navigating Spanish regulations effectively.
Receive the FEIN from the bank
Estimated time: 1 day
The FEIN, or Ficha Europea de Información Normalizada, is a standardized document Spanish banks provide detailing mortgage loan conditions. It clarifies aspects like loan type, interest rates, and fees. It's similar to the ESIS (European Standardised Information Sheet) used in the UK.
While initially non-binding, once signed by the client, it becomes a binding agreement. Spanish banks must provide the FEIN for transparency. After its acceptance, clients have a mandatory reflection period before the mortgage process advances.
Cooling off period
Estimated time: 10 days
The reflection or cooling-off period, which can vary based on the region, is a designated time, typically 10 to 14 days, allowing consumers to reconsider financial commitments like mortgages. It aims to ensure consumers fully grasp their obligations without feeling pressured.
In most of Spain, the standard cooling-off period is 10 days. However, Catalonia operates under its own set of laws, including its mortgage regulations, which mandate a 14-day reflection period.
During this time, they can review terms, seek advice, or withdraw from the agreement without penalties.
Signing at the notary office
Estimated time: 1 day
You officially sign the papers that make you the property owner at the notary's office.
The notary checks everyone's identity, ensures the document is understood, and then seals the deal. Once signed, the bank will pay the remaining balance to the seller and you will have a property and a mortgage.
Is there a faster way to get a Spanish mortgage?
If you need to accelerate the process of getting a mortgage in Spain from abroad, Homevest is your ideal solution.
With Homevest, you can upload and centralize all essential mortgage loan documents through the platform. These papers undergo an internal verification process, and once they meet the eligibility criteria, they are simultaneously sent to the banks without the need for you to upload them again for subsequent offers.
Researching the available options is an important step that requires a considerable amount of time, especially since you don't want to rush into making a hasty decision.
How do I get a mortgage in Spain with Homevest’s help?
It’s easy, fast, and free to request credit offers from banks in Spain through Homevest to compare and choose the final product.
To get started on this journey, follow these steps:
- Visit homevest.io and create a free account
- Upload your documents and request mortgage offers
The necessary documents include:
- Your ID card
- Employment contract
- Account statements from the past six months
- Pay slips from the past three months
- Tax return from the most recent fiscal year
- Credit report
Depending on the requirements of your chosen lender, you may also have the option to upload additional documents.
3. Manage your credit file
After submitting your documents, banks interested in your application will contact you within a maximum of ten working days. They will provide details about the offers they have available. From this point onwards, you can track the progress of your application and manage your file directly from your account.
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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