Naturally, if you’ve already got the cash in your hand to cover the entire cost of the Sotogrande property you’re interested in, you won’t need a mortgage. However, if you do need a mortgage but are based outside of Spain, there are various things you’ll need to consider.
The process of securing a mortgage for your Sotogrande property purchase can be a lengthy one. As for exactly how long it will take you, this will depend on your specific circumstances as you peruse Sotogrande property for sale on online property portals like ours.
Are you a resident of Spain?
Your answer to this question, and whether you pay your taxes inside or outside of Spain, will greatly affect the affordability and desirability of the mortgages available to you.
If, for instance, you reside and pay your taxes outside of Spain, you would only be entitled to a non-resident mortgage. With this type of mortgage, the maximum amount of the property’s assessed value you could borrow would be 70% – although, with some banks, the upper limit can be as low as 60%.
If, on the other hand, you are a fiscal resident of Spain who pays taxes there, the maximum loan-to-value (LTV) available to you would be 80%. This, in itself, could be a good incentive for you to investigate whether you could obtain a Spanish residency permit.
A Spanish consulate in your home country could shine some light on this subject for you, although a “golden visa” is only a prospect for major investors.
What money and documents would you need for the mortgage?
You can expect to incur various costs in the process of obtaining a mortgage in Spain. For example, when approaching a Spanish mortgage lender, you may have to pay transaction costs amounting to as much as 10-15% of the value of the Sotogrande property you are looking to buy.
As a foreigner, you would also need what is called an NIE – an identification number without which you wouldn’t be able to get a Spanish mortgage or buy a Spanish property. You can apply for an NIE at any Spanish police station or, outside of Spain, via the local Spanish consulate.
Other documents you would need in order to apply for a Spanish mortgage include proof of employment or income, a pre-agreement with the property seller, and details of your current debts and mortgages. Hand the bank your completed file so that the underwriters can process it.
Are you happy with the bank’s mortgage offer?
If not, you are free to approach a competing bank, who may provide you with a better offer you could then show the original bank to hopefully encourage them to improve their offer.
How long it will take you to finally settle on a mortgage offer will naturally depend on how much time you are willing to spend bouncing between different offers – and how much time you needed to spend on the previously-mentioned stages to reach this point.
However, if you have already agreed with a seller to buy their Sotogrande property and are now approaching a Spanish bank, the remaining process of obtaining a Sotogrande mortgage and getting the funds ready is likely to take about four to six weeks overall.
This is why we would urge you to carefully browse the selection of Sotogrande property for sal e on our website sooner rather than later. This way, you can help speed up the process of sealing the deal on your new, exciting life in this especially charming coastal area of Andalucía.
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