Tips for buying a house in Spain for the first time

Buying a home for the first time is one of those decisions that brings an equal mix of excitement and nerves. It’s not just about finding a place to live: we’re talking about a financial and personal commitment that will stay with us for years.

That’s why, before taking the leap, it’s important to clearly understand the steps to buying a home for the first time and the mistakes we should avoid.

At Fotocasa, we’re sharing a list of practical tips covering everything you need to consider before buying your first home.

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Steps to buying a home for the first time

If this is the first time we’re considering buying a home, the most important thing is to take things calmly and avoid acting on impulse. This is how you should organise the purchase of your first home so the property fits both your needs and your budget:

1. Calculate your real budget for buying a home

Before starting the search, it’s advisable to assess your financial situation realistically. Buying a house involves more costs than just the property price, and it’s essential to take them into account from the very beginning.

To make a more accurate estimate, you can use the Fotocasa mortgage calculator, which helps calculate both the required down payment and the estimated monthly instalment.

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Monthly costs (mortgage + expenses)

In addition to the down payment, it’s essential to assess the monthly instalment you can comfortably afford.

The Bank of Spain (Banco de España) recommends that the mortgage payment should not exceed 30–35% of the household’s net monthly income. Exceeding this percentage may lead to financial difficulties in the medium and long term.

It’s also important to remember that the mortgage will not be the only monthly expense. Other regular costs include:

• Community fees
• Property Tax (IBI – Impuesto sobre Bienes Inmuebles)
• Utility bills (water, electricity, gas)
• Local council taxes and charges
• Possible special assessments (derrama) or home maintenance costs

2. Compare mortgages from different banks

Another key step before even deciding which property to buy is to research the financing options available. The mortgage market is highly competitive, and conditions can vary significantly from one lender to another.

Knowing in advance what type of mortgage you can secure allows you to search for properties within a realistic budget and avoid wasting time on homes that don’t fit your financial situation.

Some key aspects to analyse:

• Interest rate: fixed, variable or mixed.

• Arrangement fees or early repayment fees.

• Linked products: check whether it is mandatory to take out products such as insurance policies or pension plans, which may end up increasing what we pay month by month.

• Mortgage negotiation margin: since this is the first time we are buying a home, lenders will generally offer loans covering up to 80% of the property value. However, some profiles may be able to secure higher financing, and even mortgages covering 100% of the cost.

One important thing to keep in mind when buying a house is not to be influenced by the first offer you receive. Ideally, you should compare mortgages and request at least three proposals.

When comparing offers, consider not only the interest rate, but also fees, linked products and repayment flexibility.

Not all property features are equally important. If we don’t set priorities, we may end up buying something that doesn’t truly match our needs. We recommend dividing your list into three categories:

• Essential: minimum square metres, number of bedrooms, lift, parking space, etc.
• Desirable: balcony, storage room, south-facing orientation, green areas.
• Optional: features that can be added or improved later on.

A great help is using apps such as the Fotocasa app, which allow you to filter through hundreds of listings and find only the options that truly match what you’re looking for in your first purchase. You can also use the AI-assisted search to find your ideal home.

4. Find the best areas to buy a home

One of the main steps to buying a home for the first time without making mistakes is to carefully analyse which areas fit within your search. To do this, you should pay attention to at least the following highly valued aspects of a neighbourhood:

• Public transport and road access
• Nearby services: schools, health centres, supermarkets…
• Safety and street lighting
• Green spaces
• Leisure options
• Overall quality of life

In addition, all of this can help us determine whether the area has potential for value appreciation. A very useful resource is the Fotocasa Neighbourhood Guide, where you can access detailed information about the area you’re considering, including real reviews from people who live there.

5. Compare prices and negotiate the final price

During the search process, it’s important to compare prices of similar properties in the same area to determine whether the asking price is aligned with the market.

Analysing different listings, reviewing property price trends and using comparison tools will help you make more informed decisions and identify potential overpricing.

Excitement can push us to decide quickly, but it’s worth taking a step back and analysing the situation calmly. Reviewing several options, comparing prices and, if possible, waiting for the right moment to buy will help you make the right choice.

In addition, we must bear in mind that the advertised price is not always the final price. In many cases, it is possible to negotiate the purchase price of a flat.

To do so, we should be clear about the historical price trends in the area, have an understanding of the property market outlook, know how long the listing has been published and assess the condition of the property. These factors can provide solid arguments to reduce the initial offer.

6. What documents need to be requested before buying a home?

To formalise the purchase of a property, it is necessary to review and gather a series of documents that confirm the property is legally in order and that the transaction can be carried out safely and securely.

These are the main documents we need to request before buying a flat:

• Nota simple: Used to verify the legal status of the property. It states who the owner is, whether there are any encumbrances (such as mortgages or liens) and other relevant details recorded in the Land Registry (Registro de la Propiedad).
• Energy Performance Certificate (Certificado de Eficiencia Energética): Provides information about the property’s energy consumption and CO₂ emissions. The Energy Performance Certificate is mandatory when selling a home and must be given to the buyer before signing.
• Occupancy Certificate (Cédula de habitabilidad): Confirms that the property meets the minimum requirements to be legally inhabited. In many Autonomous Communities, it is required to contract utilities such as water or electricity.
• Certificate of zero debt with the homeowners’ association: Confirms that the property is up to date with community fees. This prevents the buyer from assuming outstanding debts from the previous owner.
• Deposit contract (Contrato de arras): This is the agreement prior to the final sale in which buyer and seller commit to completing the transaction within a specified period. It sets out key conditions such as the price, deadlines and consequences if either party withdraws.
• Latest IBI (Property Tax) receipts paid.

From a technical perspective, it is advisable to hire an architect or qualified technician to review the structure, installations and any potential hidden defects.

What documents to request when buying a house in Spain from abroad

7. Start the procedures to buy a house

Once the property has been found, the purchase process begins, which usually includes the following administrative and legal steps:

• Make a formal offer.
• Sign the deposit contract (Contrato de arras): This is an agreement in which buyer and seller commit to completing the sale within a specified period. It sets out the final price, deadlines and the consequences if either party withdraws.
• Mortgage application and approval (if applicable): After signing the deposit contract, the mortgage is processed definitively. The bank reviews the transaction, carries out the property valuation and issues a binding offer before completion.
• Signing at the notary’s office and handover of keys.
• Registration in the Land Registry (Registro de la Propiedad): After signing, the deed is registered so that the purchase is officially recorded in the new owner’s name.

Each stage involves deadlines and costs that should be carefully planned to avoid delays or unexpected expenses.

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Is it advisable to seek professional advice when buying a home?

Buying a property involves legal, financial and administrative procedures. If we are purchasing a home for the first time, having the support of a real estate expert or a specialised lawyer can help us avoid mistakes, speed up the process and resolve any doubts during the purchase.

Their experience will allow us to:

• Identify potential legal risks
• Optimise the negotiation process
• Save time on administrative tasks

Ultimately, buying a house for the first time doesn’t have to be a path full of obstacles if we follow a clear roadmap. Planning each step, comparing options and surrounding ourselves with reliable information are the keys to making the best decision.