When you buy a house, you have the option to purchase it with or without financing from the bank. In recent years, due to the crisis in the property sector, banks have significantly restricted mortgages previously granted much more easily.
Currently banks do not grant mortgages more than 80% of the appraised value of the home. This means that the bank makes an appraisal of the property for sale and calculates the percentage of the appraisal.
The appraisal, which is valid for six months from the date of issuance, is required by law and must be carried out by an appraisal entity registered and registered in the Bank of Spain. But what the bank cannot do is impose a particular customer appraisal entity, so the customer can make pricing and ask a mortgage in different banks.
Well, pricing is the first of expenses when you go to buy a home with a mortgage. Prices in this sector, unlike the case of notaries, for example, are not regulated, so the cost can vary from one entity to another appraiser besides that varies depending on the characteristics and type of property.
Other costs that the purchase of a house with a mortgage has are the following:
It is a percentage commission on the money the bank lends you to acquire the property, and it is usually up to 2%.
Notary costs here derive from the granting of the public deed of mortgage, and are calculated on the nominal value of the mortgage. Notaries' fees are set by a government regulation, so they are more or less fixed, but may vary depending on certain circumstances.
It is calculated on the mortgage liability, and has the same characteristics as the notary fees.
It is a tax on the signing of a notarial document economic value which must then be entered in the register. It is a mandatory tax of approximately 1%, which is applied to the total mortgage liability, it is, on the principal, interest (delay and ordinary), dimensions and expense (and not on the loan amount).
Buying a home with a mortgage has many advantages, because not everyone can afford to purchase a property for its full value at the time of purchase without financing. However, as we see, the fact of asking a mortgage to address the home buying suppose that expenses (registration and notary especially) are duplicated, because we have to do two different deeds: one for the purchase and another for the mortgage.