You can see related information in number I, II, III and IV of this serie ( maybe a good reading for getting slept
)
Necessary documents for mortgage application
- Personal information: Passport number or residency card. If you are married the Bank will ask you about the financial agreements of your marriage. This is because in some cases, in order to constitute the mortgage loan, the consent of the two married people is needed.
- Financial information:
If you are an employee: recent pay slips, tax returns and wealth tax.
If you are self-employed: Income and Wealth Statements. Proof of income and past income tax instalments payments and VAT.
- Information on the property to be mortgaged:
1) if you are buying direct from the owners: photocopy of the deed of sale
2) Purchase from developer: photocopy of the sales contract
3) If you want to build your own house: land deed, license and Work project.
What information the financial institution needs to give to me?
A) Information booklet: which will provide the basics of the loan: term, interest rate, fees, commissions and all charges that will be borne by the customer. This booklet, which is regulated by the Order of transparency of financial conditions of mortgage loans, dated 1994, will allow you to compare different offers.
Once you choose the one you want, ask the financial entity to issue a “Binding Offer” (oferta vinculante) .The entity will analyze your request and will respond at short notice, after verifying the situation of the property in the Land Registry and completing the appraisal of it.
B) Binding offer: is a document that will run at least for ten days, and will specify in detail all elements of the loan:
1. Amount and way of delivery of loan
2. Repayment: number of instalments, frequency of payment, amount and payment date of the first and last instalment, commission for partial early repayment
3. Interest: nominal, if it is fixed or variable, and in the second case, how, when and depending on which index will be changed and the reference index that will be applied.
4. Commissions, opening fee and commission for -early redemption in whole or in part, this latter only applies if happens.
5. Other costs that are borne by the borrower: property valuation, notary and registration fees, etc...
6. TAE
It is important to examine binding offer because its content is what will be written in the mortgage deed
( to be continued)
Autumn in Asturias, by Caliaetu at Flickr.com