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    Guide to buying a house

    Step by step towards your new home

    Every year we help thousands of people to buy their home. We know it's a long process and there are often lots of questions. We'll tell you everything you need to know in this guide.

    • Discover the steps for buying a house.
    • See the necessary paperwork.
    • Crunch the numbers with our calculators.

    1. Buy or rent? It depends on your personal situation

    Advantages of buying

    • A mortgage payment is usually lower than a rental payment.
    • By having your own house, you are adding value to your savings and getting a return on your money.
    • In the future you will be able to rent it, sell it or leave it as an inheritance to your relatives.
    • You are not waiting for your rental to be renewed or raised.

    What should I know before buying a house?

    Review what suits you

    Advantages of renting

    • It gives you the freedom to change house, city or country whenever you want
    • You don't need as much money saved up: you pay the deposit at the start, but just the monthly rent from then on.
    • You do not have to pay maintenance, insurance or tax costs.
    • It is a flexible option if you work remotely or in different locations.

    Renting or buying a house: what to choose

    Review what suits you

    • Is it a good time to buy?

      In addition to your personal situation, it is important to analyze the real estate market. Knowing how interest rates are changing or which areas are most in-demand will help you to decide.

    • Why is buying an investment?

      Buying a flat allows you to achieve a return on your savings, it protects you from inflation and if you choose a good neighborhood, it may increase in value if you want to rent it or sell it.

    • Do you want to build your house from scratch?

      If you have found a plot of land and you want to build your house, you will need an architect, a construction company and an Autopromotor Mortgage. And a cool head, because it's a long process.

    2. If you've decided to buy, now it's time to crunch the numbers

    Which house can you afford?

    Start by calculating the price of the house you could buy based on your income. With this figure, you will know which neighborhoods are within your reach, and it will be easier to start looking for homes.

     

    Calculate price

    What is your budget?

    It's also worth doing your own numbers: how much you have, how much you need, how much you usually spend...

    • For purchases, you should have saved around 30% of the price of the house (the deposit and the expenses and taxes).
    • And once you have your mortgage, the monthly payment should not exceed 35% of your income.

    Is it possible to save more?

     

    What expenses are you going to have?

    Don't forget the expenses that it will cost to own a house:

    • The purchase and sale: apart from the deposit, you will have to contribute 10% of expenses (administration, taxes, notary, etc.) 
    • The house: insurance, maintenance, service charge, IBI (property tax) and even renovation, if necessary.
    • The mortgage: whether you choose a fixed or variable rate, you will have to pay your monthly mortgage payment.

    3. Search, observe, compare... take your time

    • How to choose the house?

      When you visit each house, check the condition of the house inside and outside (orientation, light, noise, distribution, building...)

      What should you ask when buying a house? 

    • Is it a good neighborhood?

      It is also important to know the neighborhood, see if it has good access, and even compare the price with other houses in the area.

      Review neighborhood

       

    • New or existing?

      Older homes are cheaper but need renovation, new homes are more efficient... We help you to make the best decision.

      Compare options

    4. Did you find a house? Great, let's start with the paperwork

    Calculate the value of the house

    • This way you will be able to find out the approximate value before the appraisal and discover if the purchase price is similar. 
    • When you apply for your mortgage, the bank will appraise the property. If the appraised value and purchase price don't match, the lower of the two will be used as a reference.
    • The bank can finance up to 80% of this amount if it is your main home and up to 70% if it is a second home.

    How to negotiate the price of a home

     

     

    Calculate the value of the house

    • Compile house documentation

      The land registry report (nota simple) will tell you who owns the house, and if there are any charges against it.

      You should also request the energy certificate and the latest technical appraisal (ITE) to assess the condition of the building and avoid any surprises later on.

    • Reserve the house with an earnest money agreement

      If everything is in order, you can negotiate the price and make a counter-offer.

      If the seller or agency accepts, you just need to sign an earnest money agreement to agree to continue with the process. 

      How the earnest money agreement works

       

    5. Meanwhile, you can talk to the bank and choose your mortgage

    Discover how to pay less for your mortgage

    Almost all banks offer interest rate discounts if you take out certain products or fulfill other conditions. The most common are:

    • Having your paycheck or income paid directly into the account associated with the mortgage.
    • Taking out a home insurance policy to protect it from possible mishaps. This insurance is compulsory for taking out the mortgage and if you take it out with the same bank, you may get better terms.
    • Taking out a loan repayment insurance or life insurance policy, which guarantees payment of the mortgage if there is a loss of income or the borrower dies.

    How to pay less for your mortgage

    If you are part of a professional group, you will be able to get special terms at BBVA

    If you work for the Public Administration, belong to a mutual society or have a registered profession, you can get better terms for your mortgage. 

     

    Calculate personalized price

    • The documents

      To review whether your mortgage is viable, the adviser will ask you for paychecks, contracts, income...

       

    • The appraisal

      The bank will appraise the house to calculate its real value and the final amount of the mortgage.

       

    • Administration

      If your mortgage is approved, we will take care of the necessary paperwork.

       

    • The signature

      With everything ready, you just need to agree on a day to sign before a notary. And the house will be yours!

       

    How to apply for a mortgage

    If you want to talk in person, we will call you with no strings attached

    Someone from the BBVA team will contact you to help you with your mortgage and to answer your questions.
    Request information

    6. Increase the value of your new house with a renovation

    You will save on your bills and improve your living standards

    If you have bought an existing home and want to live there, make the most of it to renovate to your liking.

    • If you improve your house's energy efficiency (thermal insulation, windows, sustainable heating, etc.), you will reduce your energy consumption.
    • You will have to comply with the current regulations when making functional changes: structure, heating, electricity, plumbing, exterior... 
    • To finance your renovation, you can apply for a loan. At BBVA, there are special loans available for this purpose.

    See BBVA sustainable products

    Calculate renovation loan

    7. Before moving, prepare for your arrival

    • Register with utility companies

      Bear in mind that some will need to be installed beforehand, such as gas or the internet.

    • Set up direct debits for bills

      This means the house's bills and taxes will be in one account. At BBVA we help you to transfer them easily.

      More information

    • Organize expenses

      With our Financial Health tools, we help you plan your daily spending and save without even realizing.

      More information

       

    8. What if you want to switch your mortgage at any time?

    You will have to carry out a switching process

    Even if you already have your mortgage and your house, life has ups and downs. You may want to switch lender, or even sell your house.

    • If you sell the house and the mortgage holder changes, this means switching borrower. The bank will carry out a risk analysis to accept the new borrower.
    • If you transfer your mortgage to another bank, this means switching lender. You can improve the terms of your mortgage without having to formalize it again. 

    If you want to bring your mortgage to BBVA, you can calculate your mortgage switch.

    What does it mean to switch mortgage lenders?

     

    Calculate mortgage switch

    If you prefer to talk in person, we will call you with no strings attached

    Someone from the BBVA team will contact you to help you with your mortgage and to answer your questions.
    Request information

    The most common queries

    Can we help you?