What does the provision of funds prior to signing a mortgage cover?

11/05/2023

The mortgage you are going to apply for to buy your future home is one of the most important financial decisions of your life. Both in terms of the amount and the number of years to which it commits you.

The first part of taking out a mortgage involves documentation, records and expenses and banks usually request a provision of funds - the money you advance to the bank to cover those expenses. In this article, we want to offer you some tips for responsible personal management of that provision.

Since the entry into force of the Real Estate Credit Law (Law 5/2019), the amount of the provision of funds has been significantly reduced, as customers only have to pay for the appraisal of the property and their copy of the deed. Despite this, banks try to ensure that they will have enough money during the process and their estimates of the amount of the provision of funds tend to be at the higher end.

First of all, for this reason, it is important to check that the amount is in line with the forecasts made.

The bank must provide you with proof of the payments made, as well as invoices for the expenses incurred with the money advanced. Once verified, the remaining amount must be returned to you. The period that elapses until the refund depends on each bank, although it can be delayed. It's not uncommon for customers to forget to claim their leftover money.