When applying for a mortgage loan in Spain, it is very important to be familiar with the culture and Spanish law. For those who aren't, it may be wise to retain an English-speaking lawyer to oversee the loan process and property purchase. (Always choose an objective lawyer that is not connected to the seller, real estate agency or bank.) Recently, legislation has begun to pass in Spain that protects buyers from those who might take advantage of them. Although one shouldn't expect any problems with their property, it is always good to be cautious when dealing with large amounts of money.

Banks in Spain want the business of real estate investors looking for property in the area. This is to the advantage of those seeking a mortgage loan, as competing banks will often try to match or beat their rivals. Never settle on the first offer. Instead, it is worth your time to compare various banks? interest rates. Bringing in offers from competitors may drive interest rate offers down even more, so don't be shy in trying to haggle. Often, it will save a person thousands in the deal.

Mortgage loans in Spain will generally cover 60% to 80% of a property's value. Residents are given better coverage than non-residents, which is often the case when one is buying property overseas. Provided that your credit is good and that the mortgage payments won't exceed 35% of your monthly wages, then there shouldn't be any problems in finalizing a mortgage loan.