A mortgage loan? Cash?

The payment method to use to purchase a property will depend on the amount of money you have to invest and your mortgage debt capacity. The budget will help you choose the area, the type of property, and the main characteristics.
There are mainly two payment methods:

• Through a mortgage loan granted by a financial institution.
• Through a cash payment.

If your option is to buy using the cash mode, you know what budget you can access. However, even with the money, it is always good to consider financing for two reasons: one, since interest rates are so low, you are not interested in going undercapitalized, and two, you can consider buying a more valuable property.

Remember that the bank will finance you a maximum of 80% of the appraised value, and in some banks, even if this appraisal is higher than the sale price, they will finance you 80% of the lower value. You must have a saving of 20% of the deal, plus purchase and sale expenses.

People who do not reside in the territory of Spain can obtain financing, but this should not exceed 50% of the value of the home.

Once you are clear about the payment methodology you want to use (cash or home loan), we can talk about the budget; this will allow you to determine the areas and types of properties you could have access to.