Fiscal approvals for mortgages in Spain

Do Spanish Banks offer financial approvals for buyers

Spanish Banks do offer what is known as an AIP but the quality, validity and process by which it can be gained varies from Bank to Bank.

Some Banks will only send and underwrite a fully documented application when a valuation has been undertaken. This type of Bank should be avoided as it requires the applicant pays for a valuation before even knowing if they are accepted by the Bank fiscally.

Other Banks will offer a full underwrite as long as a specific property can be shown and all fiscal documents are presented.

For applicants who have not found a property a few Banks will still risk assess the fiscal situation but many will just offer viabilty check.

Process of applying for a mortgage

In all instances for the underwrite to have any validity at all a fully packaged application must be presented. Any documnet given to a potential borrower at Branch Level that has either not included providing the formal paperwork or has not been sent tio the Head Offcie risk team is not worth the paper it is written on.

All Banks can provide quotes based on what the applicant is telling them but without this being supported by proof the quote remains just that, an indication of the terms and conditions that can be expected.

Documents required

All loan applications will need to be fully packaged and include the required documents this will mean showing evidence of incomes, which is always net incomes in the Spanish process. Unless the buyer resides on a non tax paying jurisdiction incomes will need to be shown on a personal tax retrun to be assessed.

Supporting bank statements showing incomes being recieved will be needed and so will a copy of the applicants credit file. Spanish Banks cannot credit search an individual in their own country of residency so need the applicant to provdie a copy of their credit file.

Credit score which is a major underwriting tool in other countries is not taken into account by Spanish Banks. The credit file is required only to check what debts are held, how much per month they are costing and the payment history.

Read the full article : - Approvals in principle in Spain