The confinement decreed by the Government last Saturday to stop the advance of the coronavirus has affected all the economic sectors of our country; also to the bank. From the financial comparator HelpMyCash.comHowever, they claim that one of their most important businesses still works despite the quarantine: the one about the granting of mortgages. They qualify, yes, that entities have had to modify their processes to adapt to the new situation and that the mortgaged potential may encounter several pitfalls that may delay the signing of the operation.
Banking continues to function
As Finance specialists at HelpMyCash have learned, financial institutions operating in Spain still process and approve mortgage applications. Therefore, all those seeking financing to purchase a home (either while this health crisis lasts or afterwards) can compare different offers and request financing from the banks that have convinced them.
The processing, however, must be done mostly at a distance. And is that in order to fully respect the confinement, practically all banks ask not to go to the offices if it is not strictly necessary. So, many of the steps to process the request can be done over the phone or online: the request for information, the sending of documents proving the creditworthiness of the client, etc.
As explained by the comparator, traditional entities such as Santander Bank, BBVA or Bankia have had to adapt to be able to carry out these procedures remotely. To these we must add online banks such as EVO, Openbank or Hipotecas.com, who previously had different tools that allow them to analyze requests electronically.
Valuation, notary and registration: possible bottlenecks
The applicant, however, may encounter several obstacles before being able to take out the mortgage. First, because of the quarantine ordered by the Executive, there are appraisers who cannot travel to the home to value it (something essential for the bank to approve the mortgage), either by their own will or because the occupant of the property itself prevents it. Even so, appraisal agencies can overcome this obstacle by transferring the assignment to other technicians who can do the work, but whether or not the appraisal is carried out will depend, in the end, on whether the owner of the apartment is willing to allow the technician input during these days.
Another potential problem is that the mortgage cannot be formalized in a notary. Currently, according to the General Council of Notaries, only operations that are “urgent” can be written. This can cause the quote for signature be postponed until the health crisis is resolved.
Registrar activity, who are the ones who have to register both the mortgage and the new ownership of the home, it has also been restricted by the coronavirus. As reported on the website of the College of Registrars of Spain, registrations are still open, although with shorter hours (from 9 to 14 hours). In the event that a registry had to close due to quarantine, the closest would be in charge of registering the operation, although if there were none, the expiration period of the registrations would be suspended to be able to do it later.
What do I do if I have the deposit signed?
These three aspects can become a bottleneck that can delay the formalization of both the mortgage and the sale. For this reason, in case the future acquirer has already signed a reservation with the seller, from HelpMyCash.com recommend reach an agreement with this to extend its validity period. This way, you will avoid losing the money in advance if you cannot take out the mortgage loan until the confinement is lifted.
It is also convenient, in the opinion of the experts of this comparator, ask the bank for your final offer (containing the terms of the mortgage) stay current as long as possible. By law, the binding nature of this final offer must last a minimum of 10 days, but the client and the entity can agree on a longer term.