A mortgage in Spain slots into the wider property-purchase sequence at a specific, legally structured point: the lender must value the property (tasación) before granting the loan, must deliver a binding standardized offer (the FEIN) at least 10 days before signing, and — critically — the mortgage deed and the property purchase deed (escritura de compraventa) are typically signed together at the notary, with loan drawdown happening simultaneously with the transfer of ownership. This document covers how the loan step fits into the purchase timeline; general loan-product mechanics (interest rate types, Euribor indexing) are covered separately.
Because the mortgage offer, valuation, and purchase deed are interlocked, a buyer who has not lined up financing before signing an arras (deposit) contract risks being contractually committed to a purchase date they cannot actually finance in time — or risks losing their deposit under Civil Code arras rules if the loan isn't ready. Lenders require the valuation and binding loan offer to be finalized before the mortgage deed can be signed, and — per government guidance on the purchase process — deed signing (escritura) and loan disbursement happen simultaneously, so the mortgage approval pipeline needs to be substantially complete before committing to a fixed completion date in the arras contract.
Key Facts
Properties offered as mortgage collateral must undergo a **tasación** (valuation) by a taxation company or a lender's valuation service regulated under Ley 2/1981, carried out **before the loan contract is agreed** — this is a requirement under Spain's mortgage-market regulation, reiterated in Ley 5/2019 (the mortgage credit contracts law).
The lender must issue a binding offer document (**FEIN** — Ficha Europea de Información Normalizada) that the borrower must receive at least **10 calendar days** (14 days in Cataluña, per regional consumer-protection rules) before signing the mortgage deed, giving a mandatory reflection period. A **FiAE** (Ficha de Advertencias Estandarizadas) accompanies it, flagging the loan's riskier clauses.
During that reflection period, the borrower must visit the notary — free of charge — at least 24 hours before signing, so the notary can confirm the borrower understood the loan terms and that all legally required documentation was delivered on time.
The property purchase deed and the mortgage loan's drawdown are normally executed **simultaneously** at the notary: the seller is paid (in part or in full) directly from the loan proceeds at the same signing.
Under Ley 5/2019, the cost allocation for a mortgage's formalization is fixed by law: the **borrower pays for the property valuation (tasación)**; the **lender pays** for the notary's arancel on the mortgage deed and for gestoría costs associated with registering the mortgage.
Fire/damage insurance (seguro de daños/incendios) on the mortgaged property is legally required as a condition of the loan (see the companion insurance.md document for detail) — this is distinct from, and narrower than, full home-contents insurance.
Loan-to-value (LTV) limits are **not set by Spanish law or by a government-mandated cap** — they are individual lender risk policy. Industry-reported norms (not sourced from an official regulator) commonly cited are: residents can often obtain up to ~80% LTV (occasionally higher for very strong applicant profiles on a primary residence), while non-resident buyers are typically offered a lower LTV, commonly cited in the 60–70% range. **These specific percentages are market/industry-reported figures, not confirmed via an official Banco de España publication, and should be flagged as unconfirmed/indicative when presented to users.**
Steps
1. Get pre-approval / loan simulation before signing arras — Before committing to a deposit under an arras contract, buyers using financing should obtain at least an informal pre-approval or simulation from a lender to confirm likely LTV and monthly-payment capacity.
2. Property valuation (tasación) — The lender commissions (or accepts) a tasación from a homologated valuation company; this is a precondition for the loan to be finalized and is paid for by the borrower under Ley 5/2019's cost-allocation rules.
3. Receive the FEIN binding offer and FiAE warnings document — At least 10 days (14 in Cataluña) before the mortgage signing date, the lender must deliver the binding FEIN offer plus the FiAE risk-warnings sheet.
4. Free notary review appointment — The borrower attends the notary, at least 24 hours before signing, for a mandatory free explanation of the loan's terms and a check that all required paperwork and timelines were respected.
5. Simultaneous signing: purchase deed + mortgage deed — Buyer, seller, and lender representative sign the escritura de compraventa and the mortgage deed together; the loan is disbursed and the seller is paid at the same appointment.
6. Mortgage registration — Alongside the purchase deed, the mortgage is registered at the Registro de la Propiedad as a charge against the property; the lender bears the associated gestoría and notary costs for this step under Ley 5/2019.
Timelines
FEIN binding-offer reflection period: minimum 10 calendar days before signing (14 days in Cataluña).
Mandatory notary review appointment: at least 24 hours before the mortgage signing.
Purchase deed and loan disbursement: same appointment (simultaneous).
Required Documents
Proof of income/employment and tax returns (for loan underwriting)
NIE (foreign borrowers)
Property valuation report (tasación)
FEIN and FiAE documents from the lender
Life/fire insurance arrangements as required by the lender
Common Mistakes
Signing an arras (deposit) contract with a completion date before mortgage approval and the FEIN reflection period can realistically be completed.
Assuming a resident-level LTV (e.g., 80%) will be offered to a non-resident buyer, when lenders commonly apply materially lower LTV limits to non-residents.
Not budgeting the tasación cost separately, since — unlike some other mortgage-related costs — the borrower (not the lender) pays for it under current law.
Treating the FEIN's 10-day reflection period as optional or skippable to speed up closing — it is a mandatory consumer-protection period.