What requirements will the financial
Although the requirements will vary depending on the bank you apply to for a mortgage, certain requirements are
common to all of them. In addition to your personal details (age, marital status, number of family members), all
banks will want to see documentation as proof of your income, job security, savings and the type of home you
wish to purchase.
1. Your income One of the first things the financial institution will look at when you apply for a mortgage is your net
The bank will request several documents depending on your employment status: your last three payslips if you are
in paid employment, your last three quarterly income tax payments and registration for tax on economic
activities (IAE, by its Spanish acronym) if you are self-employed, in addition to your most recent tax returns
and any other sources of income you may have (income from the rental of other properties, etc.).
The objective is simply to ascertain whether you have enough income to be able to make your mortgage repayments
comfortably. As we saw earlier, your mortgage repayments should not exceed 35% or 40% of your income.
2. Job security It will be easier for you to get a mortgage if you are able to demonstrate that you have job and, hence,
When you apply for a mortgage, banks tend to look favourably on applicants with a permanent employment contract
and several years of service with the company, or who are civil servants.
3. Your savings The bank will probably ask you for proof of the savings you have available to pay the portion not covered
by the mortgage (usually 20% of the house price), property appraisal fees and taxes such as VAT.
4. The type of home you want to buy Finally, the bank will also look at the type of property you want to purchase (house, apartment), the
state of repair and location. In any event, you will need to have the property valued by an approved appraisal
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