How long does a mortgage take?
April 11th, 2022 |
When we decide to buy a home, one of the processes that causes the most uncertainty for buyers is applying for a mortgage. It is totally unknown what will be the time to grant a mortgage, since neither the previous one nor the new mortgage law specifies how long the bank should take to give us its decision.
These processes can be long and distressing if we go blindly, so it is always a good idea to have continuous communication with your real estate advisor, at Homewatch we put the best professionals at your service so that you can deal with all these processes in the best possible way. Do not hesitate to contact us and speak with your reference advisor: https://www.homewatch.es/es/contacto
We are going to see, then, how long it may take to grant a mortgage, the steps to get a mortgage from the beginning to the end.
First steps to apply for a mortgage
We are going to start at the beginning seeing the first steps to get a mortgage and thus see how long it can take to grant you the mortgage loan.
The first thing we must do is tell the bank that we want to apply for a mortgage loan. This first procedure, nowadays, can be done completely online, so we can lighten the time by doing it from our own home.
This is no longer up to us to be as fast as possible. The appraiser that the bank proposes to us is the one who must carry out the appraisal and it depends on his work schedule that you can lighten or delay our mortgage.
Obtaining the simple note
In just 24 hours you will be able to obtain the simple note from the property registry, you can even request it in advance while you study the possibility of buying the home before applying for the mortgage.
Delivery of documentation in bank
Depending on the bank, you will have to go to the office to deliver the documentation required for the mortgage or you can send it by courier. This can cause the mortgage to be extended if you have to wait for the bank to give you an appointment to deliver the documents.
How is the application for a mortgage loan studied?
After these first steps that you must carry out, it is up to the bank to study the mortgage loan. This process may take more or less depending on several factors.
The bank must corroborate the information obtained through the documents delivered, the simple note and the value of the appraisal made of the home that is the object of the purchase.
This phase is usually very important, since this is where the banks usually take the longest and we can do nothing but wait for them to have everything resolved. During the process, the banking entity must make an inquiry to the CIRBE (Risk Information Center of the Bank of Spain), make an assessment of the borrowing capacity of the user requesting the mortgage, it must also make an assessment of the risks that may run the entity with the granting of the mortgage loan and, finally, it will carry out a commercial assessment on whether or not it is interested in granting the mortgage.
How to know if a mortgage is granted?
Once the bank studies our case well, it must decide on the granting of our mortgage. As we have said, the study phase may be the longest and the one that escapes the most from our hands, since we can only wait patiently for the bank to notify us of its decision.
When they make their decision, if it is positive and after informing us, there are a series of requirements that can delay the time for signing the contract.
These are the last steps to get the mortgage granted.
Have a binding offer
Whenever the resolution of the mortgage is favorable, the bank will send us a binding offer where all the conditions and clauses that will appear in the deed of sale to be made can be appreciated. This document is valid for ten days, so the delay cannot exceed that time from now on.
Offer reviewed before a notary
This offer must be reviewed before a notary, who must attest to the mortgage contract. This way we will make sure that there are no abusive clauses or conditions that we do not understand. The notary will corroborate all the information in the offer and will give us his verdict in the shortest time possible.
Signing of the deeds
Finally, when the notary of its approval, will summon us to sign the deeds. That day the seller, the buyer and a representative of the banking entity that is going to grant the mortgage will have to attend, to have all the papers ready and settle the matter of the sale and the mortgage loan.
As you can see, granting a mortgage is a process that has many parts, some of them a bit complicated, or at least very opaque in terms of offering information that is easy to understand by the average user.
For all this it is important that you find a trusted real estate agent to guide you and help you throughout the process of buying and selling a home. At Homewatch you can count on great professionals, with full dedication who will make all the processes related to your home much more affordable.
Do not hesitate to request information, at Homewatch we are here to help you with everything you may need: https://www.homewatch.es/
Article by Vanesa Mena, Apr 11, 2022