The order matters more than the bank. If you apply for the mortgage once the deposit contract is signed, you are racing the clock — and that always costs, whether in the rate, the terms or your nerves. Here is what to settle before you make an offer.
1. Before viewing homes: know what they will lend you
Spanish banks normally lend up to 80 % of the valuation or the purchase price, whichever is lower. The remaining 20 % plus the purchase costs — between 10 and 12 % in Catalonia, counting transfer tax or VAT, notary, land registry and paperwork — come out of your pocket. On a €600,000 home that is around €190,000 in cash. Knowing it before you fall in love with a house saves you the worst kind of disappointment.
The other rule is the instalment: most lenders do not want your total monthly debt to exceed 35 % of your net income. Those two numbers give you your real ceiling, and it is the one I use to filter what I show you.
2. The paperwork you will need
It is always the same list, and having it scanned in advance saves weeks:
3. The right moment to apply
Get pre-approval before you make offers. It is free, commits you to nothing and lasts three to six months. With it in hand you negotiate differently: the seller knows you can sign, and that is sometimes worth more than raising your price.
Once the deposit contract is signed, the clock starts: valuation, risk assessment and binding offer usually take four to eight weeks. That is why the deposit contract should set a realistic deadline and, where possible, a condition tied to the financing.
4. Fixed, variable or mixed
There is no single right answer. Fixed buys peace of mind and suits you if you will stay many years; variable can work out cheaper over a short term or if you plan to repay early; mixed is the middle ground most people sign lately. What does deserve a magnifying glass is the tie-ins: life and home insurance, salary account, cards. A pretty rate with three products attached costs more than an average clean one.
5. If you are buying from outside Spain
For non-residents, lending usually drops to 60 or 70 %, and the bank will want your income documents translated and sometimes apostilled. You will need an NIE and a Spanish bank account; both can be arranged by power of attorney without living here. It is slower, not harder: allow an extra month.
If you like, we can go through your numbers before you start viewing homes. I work with a mortgage broker who compares several lenders at once, and in half an hour you will know your real ceiling and which documents you are missing.