Documents needed to buy a home

Buying a home is one of the most important financial decisions a person can make in his or her lifetime. This process not only involves a significant investment of money, but also the preparation and presentation of several documents.

Knowing what documents are needed to close a home buying process is of vital importance, as well as complying with all the established requirements to avoid complications and ensure a successful transaction. "What do I need to buy a house?" "What purchase and sale documents need to be requested to close the transaction and that nothing is left to chance?" It's common to ask this question, but don't worry. We explain everything you need to know about the process of buying a new home, and what documents to ask for before buying one.

Requirements for buying a house

Buying a real estate property needs certain requirements that vary depending on the country and region, but generally include financial, legal and personal aspects. These are some of the most common requirements:

·       To have a saved capital. The buyer must demonstrate that he/she has the financial ability to purchase the property. This includes having sufficient savings for the down payment (commonly between 10% and 20% of the value of the property) and the ability to obtain a mortgage if necessary. Of all the requirements for buying a home, this is perhaps the most basic, since without a down payment, the chances of buying a home through a mortgage vanish.

·       Have a good credit history. Financial institutions will review the buyer's credit history to assess his or her ability to pay. A good credit history is crucial to obtaining a mortgage loan with favorable terms.

·       Be in possession of a valid ID document. A valid official ID, such as a passport, national ID card or driver's license, is essential.

·       Attach proof of solvency. Buyers must provide evidence of their income. This may include pay stubs, bank statements, or tax returns. Self-employed individuals may need to provide additional information, such as financial statements and letters from accountants.

·       Proof of marriage certificate if married. It is important for the buyer to clarify his/her marital status. If married, it may be necessary to present the marital regime (joint or separate property) and to have the consent of the spouse for the transaction.

What documents are needed to buy a house?

The home buying process involves the collection and submission of a variety of documents. The following are the most commonly required documents:

Identification and marital status documents, such as:

·       Official identification. Passport, national identity card, or driver's license of the buyer (and spouse if applicable).

·       Marriage certificate. To verify the buyer's marital status.

If you do not know what documents to ask for before buying a home, tell your agent or agent about your situation to know in advance what documents you need and make the most efficient use of your time.

Financial documents, including:

·       Proof of income. Salary receipts, bank statements for the last three to six months, and tax returns for the last few years. Of the most common home purchase and sale documents.

·       Savings statements. Savings account statements and funds available for down payment and other costs associated with the purchase.

·       Mortgage pre-approval letter. If the purchase is to be financed through a mortgage, a pre-approval letter from the lender is required. This letter indicates that the buyer has been pre-screened and is likely to obtain the loan.

Property documents, such as:

·       Title to the property. Document certifying who the current owner of the home is and that the property is free of liens or legal disputes.

·       Certificate of freedom of encumbrances. To corroborate that the acquired property does not consist of economic loads nor pending debts that, if they exist, would be transferred to the new owner.

·       Cadastral plan. That allows to know the limits and characteristics of the land and the construction.

Documents of the sale and purchase process. The most important are:

·       The purchase and sale agreement. Document that establishes the terms and conditions of the transaction, including the purchase price, important dates and any special conditions.

·       The deed of delivery. Document that certifies the physical delivery of the property to the buyer.

·       The public deed. Legal document that formalizes the transfer of the property. This must be drawn up by a notary public and subsequently registered in the public registry of the property.

·       The inspection report. This is an evaluation performed by a professional to verify the physical condition of the property and detect possible structural or maintenance problems.

·       The appraisal of the property. A professional appraisal of the market value of the property. This is especially important if you are applying for a mortgage, since financial institutions use this value to determine the amount of the loan.

Other documents that you might need if you want to buy a house are:

·       The residence permit or visa, if you reside abroad. If you are part of the community of owners looking to purchase a home in Spain and have your legal residence in another country, it may be necessary to provide a valid residence permit or visa.

·       Power of attorney. Only in the event that the buyer cannot attend the signing of documents in person, the person holding the power of attorney can justify its possession in order to be able to act legally on behalf of the buyer.

If you want to know more about the houses and apartments for sale that we have in HOFFMANN, be sure to take a look at:

Houses and apartments for sale at HOFFMANN