Application process Spain
Application process
There is only one chance to make a first impression at a bank: as far as we are concerned, it should be overwhelmingly good. After choosing a particular route toward realizing the desired mortgage loan (see also “preparation”), the application process begins. Five stages can be distinguished in the application process: 1. preliminary application 2. file, 3. submit, 4. monitoring and adjusting, 5. conclusion.
To verify that an application is indeed feasible – in principle – a preliminary application is often first submitted to the intended Spanish bank.
A well-documented application is essential for a successful application. Unclear or gaps in documentation create the perception of additional risk on the part of the bank. Together, the documentation is completed to the point where all essential elements are substantiated.
Hypotheek & Buitenland creates a comprehensive cover letter explaining all the elements and translating them so that everything is 100% clear to the Spanish bank. The application is completed with the bank’s application form after which it is submitted.
Once submitted, additional questions or requests for additional documents sometimes follow. Ambiguities are clarified and additional substantiation in the form of documents is provided. Where necessary, if the situation calls for it, the application will be adjusted. If an application is unexpectedly rejected then an attempt will be made to change the bank’s mind by convincing the bank they are wrong. Should that fail, consultation and, if possible, applying for a mortgage with another Spanish bank will follow.
When the risk committee of the respective bank has given its approval and also the appraisal shows a sufficient value, the bank will give its final approval and send the so-called FEIN (Ficha Europea de Información Normalizada). This document contains all the details of the mortgage being offered. The FIAE (Ficha Europea de Advertencias Estandarizadas), lists all the risks, warnings and obligations associated with the mortgage. Among several other documents, you will also receive the Cuadre Gastos documents and the Resumen Gastos. These documents include a breakdown of all costs and the exact calculation of the money to be brought into the sale yourself. After observing the legally required reflection period of 10 days (effectively 11 days), the mortgage can be formalized and the sale completed at the notary. If desired, a bank account in Spain will be opened and insurance arranged with the help of Hypotheek & Buitenland.
The processing time for a mortgage application in Spain varies greatly from bank to bank. Counting from the time the fully documented mortgage application is submitted, with some banks you will know where you stand after 2 to 3 weeks. With other banks, it takes as much as 2 to 2.5 months before there is a full agreement. Longer are the processing times for more complex mortgage applications such as when buying out a (former) partner, refinancing or financing new construction.
A valuation is always required in Spain. Once the bank’s risk department has given its approval data, the valuation can be launched. Typically, the bank initiates the appraisal and directs the appraiser. The cost of the appraisal is always the responsibility of the mortgage applicant.
Some banks that do not have an employee internally who is familiar with the Dutch language ask for (sworn) translations of some documents, such as pay slips, tax assessments or other documents. The goal is always to minimize the translations required.
