The process of buying a house can be cumbersome, especially if it is your first home. During the process of purchasing a flat, the necessary paperwork varies depending on the type of property, and if the purchase is made through a mortgage, the list of documents is longer.
Finding the perfect property, moving out of your current residence, and securing a loan can be difficult tasks to juggle.
Before you start looking for a new home, it is a good idea to obtain pre-approval for a mortgage. Getting pre-approved allows you to know the actual scope of the loan so you can adjust your search, and at the same time lets sellers know that the buyer is serious.
To approve the loan, institutions require a mortgage valuation., a report prepared by a company approved by the Bank of Spain, which must compile a series of documents in order to issue a property valuation.
Key documents required to value a property
Before sending an appraiser to the property address, the appraisal company will request documents and certificates from the interested party in order to carry out the mortgage appraisal.
Among the appraisal requirements:
- the interested party must be indicated as the applicant for the report,
- it must be specified that the purpose is mortgage-related,
- there should be no conditions attached, and
- It must be in force on the day the mortgage is signed.
Once the valuation analysis has been completed, the file will be sent to the agency to prepare for signing.
Article 8 of the Order ECO 805/2003 establishes rules for calculating the appraisal value of real estate. It determines that “in order to calculate the appraisal value, all documents necessary for the complete identification of the object of the valuation must be available in advance, taking into account the type of property, the purpose of the valuation, the state of occupancy and construction of the property, and the valuation method used.”.
Generally speaking, to all reports, A registration certificate, title deed or simple note with a maximum validity of three months will be requested, as well as a document with cadastral information no more than three months old.
Registration certification certificate of ownership and encumbrances of the property, as well as its full description, issued by the virtual land registry office within the three months prior to the date of valuation, or its legal equivalents in alternative formats.
The General Directorate of Cadastre defines the cadastral reference as “the official and mandatory identifier of real estate. It consists of an alphanumeric code assigned by the Cadastre so that each property has a unique cadastral reference that allows it to be unequivocally located on the cadastral map. It is composed of twenty characters.”.
For specific cases, it is necessary to set aside other documentation in addition to that mentioned above:
- In the case of publicly protected housing, a rating certificate or administrative document must be provided that certifies or allows the maximum sale or rental price to be determined.
- In the case of buildings under construction or renovation, The relevant professional association will request the visa, the building permit, the latest certification of the work carried out issued by the project management team, as well as the contract for the execution of the work and the contract budget, if available.
- In the case of properties for rent in whole or in part, the lease agreement or other title of occupancy, the last rent receipt paid, and a certificate issued by the owner clearly stating the following must be provided: each of the leased areas within the property; the total net annual rent produced and for each of the parties; the occupancy status of the property; the payment status of current rents; the expenses attributable to the property, indicating those passed on to the occupant during the last year and the use of the property.
- In the case of country estates, the relevant cadastral documentation must be provided, referring to its exploitation regime, as well as, where applicable, that relating to irrigation rights and yield.
- In the case of land valued according to its urban development potential or for planned buildings, the planning certificate or municipal certificate or other documentation that allows the type of land to be determined shall be requested and, where applicable, its urban use, conditions for its development or documentation necessary to determine them.