Buy a newly built house is the dream of many people. who are looking for a new home adapted to their needs. However, one of the most frequent doubts that arises in this process is how to pay for the new construction.The financing terms and conditions of the the deadlines are often different from those of the purchase. of second-hand housing.
We tell you everything you need to know about how to pay for new housing. From the initial payments to the formalisation of the mortgage.
Reservation of accommodation
The first step in the process of purchasing a new home is usually the most important reservation. This phase is key to secure property, especially in promotions with high demand.
Normally, a small amount of money is paid to block the home in your name. This payment may vary between 1% and 5% of the total value of the property, depending on the developer.
It is important to having a good real estate salespersonThe owner or, if necessary, the promoter, who will explain all the details of the contract to you. Be clear about the reservation, the following payment procedure and the deadlines is one of the fundamental roles of any good manager.
Contract of sale and first payment
Once the property has been reserved, the contract of sale. This document formalises the commitment between the buyer and the developer.
At this point, a more significant amount is usually paid, which can range from 10% to 30% of the value of the dwelling. This amount varies according to the type of promotion and the conditions of the promoter.
The contract of sale sets out the payment termsThe conditions for the handover of the property and other important aspects such as penalties for non-compliance of one of the parties.
In addition, at the moment it is essential to ensure that the promoter has a guarantee insurance policywhich protects the buyer.
Payments during construction
These payments may be spread over several phases of the project, depending on the duration of the work.
For example, some developers may require payments every three or six months, or depending on the progress of the work (foundations, structure, etc.).
Mortgages on new housing
In new construction, as in any other type of sale and purchase. There are buyers who need a mortgage and others who can pay cash. In the case of the mortgage. We have to take into account first of all that Spanish banks offer 50% of the total value of the property for non-residents and 80% for Spaniards. In this regard, let's take a look at the options available.
Types of mortgages
There are several types of mortgages, and it is crucial to choose the one that best suits your needs:
- Fixed-rate mortgagesThe interest rate remains constant throughout the life of the loan.
- Variable rate mortgagesThe interest rate may vary, usually linked to a benchmark such as Euribor.
- Mixed mortgagesCombines an initial fixed-rate period with a variable-rate period.
How to apply for a mortgage?
To apply for a mortgage, you will need to submit several documents, such as your ID card, pay slips, purchase contract, etc. and a valuation report of the property. It is advisable to compare several bank offers to find the best option in terms of interest rates and conditions.
Final payment and deed
The last step in the payment process of a newly built house is the final payment. This is done at the time of signing of the deed of sale before a notary.
The remaining amount of the house price is paid at this point in time, and additional costs must be taken into account such as taxes, notary and land registry.
Other expenses to consider
In addition to the price of housing, it is essential to consider:
- Transfer Tax (Impuesto sobre Transmisiones Patrimoniales - ITP) o VATdepending on whether it is new or second-hand.
- Notary fees y registration.
- Valuation costs if you apply for a mortgage.
Things to consider when buying a new building
Saber how to pay for a new building is essential for anyone considering buying a home. From the initial reservation and payments during construction through to mortgage and final paymentevery step requires attention and planning.
It is advisable to seek the advice of an expert in the field of real estate and financeYou will need to make sure that you make the right decisions and avoid unpleasant surprises. In doing so, you can enjoy your new home with peace of mind of knowing that everything the process has been properly managed.
