Ultimate Guide to Buying a Home in 2025: Steps, Requirements & Practical Tips

Buying a home is probably the most important financial decision of your life. In 2025, the Spanish real estate market presents unique opportunities, but also challenges that require proper preparation. This guide will walk you through the entire process step by step, from the initial idea to the moment you receive the keys to your new home.

Before You Begin: Are You Ready to Buy?

Before you start looking at properties, it’s essential to make an honest assessment of your situation. Buying without proper preparation can turn a dream into a financial nightmare.

Signs that you’re ready to buy

Job stability: Ideally, you should have a permanent contract with at least 2 years of seniority. Banks highly value job stability when granting mortgages.

Sufficient savings: You’ll need between 30% and 35% of the property value in savings. This includes the down payment (20%) and associated costs (10-15%).

Borrowing capacity: Your mortgage payment shouldn’t exceed 30-35% of your net monthly income. Banks rarely approve mortgages that exceed this threshold.

Long-term vision: Buying only makes sense if you plan to stay at least 5-7 years. Purchase costs are high and you need time to recoup them.

Step 1: Financial Planning

Financial planning is the foundation of a successful purchase. Without clear numbers, you risk falling in love with properties you can’t afford.

Calculate your real budget

Basic formula to determine your maximum budget:

1. Calculate 35% of your net monthly income (maximum recommended payment)
2. Multiply by 300 (for a 25-year mortgage at current rates)
3. The result is approximately the maximum property price you can afford

Practical example:

• Net monthly income: €2,500
• Maximum payment (35%): €875
• Approximate maximum price: €262,500

Breakdown of purchase costs

Required savings: the 30-35% rule

For a €300,000 property, you’ll need:

• Down payment (20%): €60,000
• Costs (12%): €36,000
• Safety cushion: €10,000-15,000
• Recommended total: €106,000-111,000

Step 2: Get Mortgage Pre-Approval

Before visiting properties, get a mortgage pre-approval. This will give you clarity about your real budget and position you as a serious buyer to sellers.

Documentation needed for pre-approval

Employees:

• Valid ID/NIE
• Last 3 payslips
• Income Tax Return (IRPF) from last year
• Updated work history
• Employment contract
• Bank statements (last 6 months)

Self-employed:

• Valid ID/NIE
• Last 4 quarterly VAT and IRPF declarations
• Income Tax Return (last 2 years)
• Certificate of being current with Tax Agency and Social Security
• Bank statements (last 12 months)
• Income and expense book

Types of mortgages in 2025

Fixed-rate mortgage:

• Current rate: 2.85% - 3.50% APR
• Payment unchanged throughout the loan term
• Ideal for: those seeking stability and predictability

Variable-rate mortgage:

• Current rate: Euribor + 0.50% to 1.00% (approximately 3.00-3.50% currently)
• Payment fluctuates according to Euribor
• Ideal for: those expecting rate decreases who can handle variations

Mixed mortgage:

• First 5-10 years at fixed rate, rest variable
• Combines initial stability with potential savings later
• Ideal for: the undecided who want a middle ground

Compare between multiple banks

Don’t settle for the first offer. Banks compete for solvent clients and conditions can vary significantly:

• Request offers from at least 3-4 institutions
• Compare the APR (includes all costs), not just the nominal rate
• Negotiate the elimination of unnecessary linked products
• Consider mortgage brokers who negotiate for you

Step 3: Finding the Ideal Property

With your budget clear and pre-approval in hand, it’s time to look for your home.

Define your search criteria

Essential criteria (non-negotiable):

• Location (area, neighborhood, distance to work)
• Minimum number of bedrooms
• Maximum budget
• Type of housing (apartment, house, penthouse)

Desirable criteria (flexible):

• Orientation and natural light
• Terrace or balcony
• Parking space
• Storage room
• Elevator (especially important for upper floors)

Where to look for properties

Real estate portals:

• Idealista, Fotocasa, Habitaclia (the most popular in Spain)
• Pisos.com, Yaencontre

Professional real estate agencies:

• Access to properties before they’re listed
• Guidance throughout the process
• Professional negotiation

Banks:

• Foreclosed property portfolios
• Possible special financing conditions

Viewings: what to observe

During viewings, maintain an analytical attitude beyond the first impression:

Structure and general condition:

• Dampness, cracks, condition of walls and ceilings
• Electrical installation (panel, outlets, light fixtures)
• Plumbing (water pressure, condition of visible pipes)
• Window and door carpentry

Orientation and light:

• Visit at different times of day if possible
• South/southwest: more natural light and warmth
• North: cooler but less bright

Community and building:

• Condition of common areas (lobby, stairs, elevator)
• Ask about pending or planned special assessments
• Briefly chat with neighbors if possible

Surroundings:

• Nearby services (supermarkets, schools, transportation)
• Noise level (traffic, bars, nightclubs)
• Parking in the area

Step 4: Negotiation and Offer

You’ve found the ideal property. Now comes negotiation, an art that can save you thousands of euros.

Research before making an offer

Market analysis:

• Compare prices of similar properties in the area
• Check the average price per square meter in the neighborhood
• Research how long the property has been on the market (more time = more negotiation room)

Factors that favor negotiation:

• Property on sale for more than 6 months
• Seller with urgency (inheritance, divorce, relocation)
• Defects requiring renovations
• Market with downward trend

How to make an offer

Initial verbal offer:

• Express your interest and make a first proposal
• Justify your offer (comparables, necessary renovations, etc.)
• Show you’re a serious buyer (mortgage pre-approval)

Written offer:

• If there’s verbal agreement, formalize with a written offer
• Include conditions (subject to mortgage, technical inspection, etc.)
• Set validity period (7-14 days)

The deposit contract (Arras)

Once the offer is accepted, the deposit contract is signed to reserve the property:

Types of deposits:

• Penitential deposit (most common): Buyer loses deposit if they withdraw; seller returns double if they withdraw.
• Confirmatory deposit: Firm commitment, non-compliance can be claimed judicially.
• Penalty deposit: Similar to confirmatory but with predefined penalty.

Usual amount: 5-10% of purchase price

Contract contents:

• Identification of parties
• Detailed description of the property
• Agreed price and payment method
• Deadline for deed signing
• Suspensive conditions (if any)
• Consequences of non-compliance

Step 5: Legal Verification and Due Diligence

Before committing definitively, verify that the property is free of encumbrances and legal problems.

Documentation to request

From the property:

• Simple note from Property Registry: Confirms ownership and encumbrances (mortgages, liens, easements)
• Energy efficiency certificate: Required for sale
• Habitability certificate: Confirms the dwelling meets habitability requirements
• Latest IBI receipt: Verifies property tax is current
• Community certificate: Confirms no debts with the homeowners’ association

From the seller:

• Owner’s ID/NIE
• If inheritance: inheritance acceptance documentation
• If company: articles of incorporation and signatory powers

Technical inspection

Consider hiring an architect or surveyor for a technical inspection, especially for:

• Old properties (more than 30-40 years)
• Properties with apparent renovations
• Penthouses or ground floors (more prone to dampness)
• If you detected anything suspicious during viewings

Approximate cost: €200-400 (a minimal investment compared to the property price)

Step 6: Mortgage Formalization

With the deposit signed, you have a deadline (usually 1-3 months) to close the mortgage and sign the purchase.

Definitive approval process

1. Submit complete documentation to chosen bank
2. Official appraisal of the property (required by the bank)
3. Risk analysis by the bank’s risk department
4. FEIN and FiAE: Mandatory pre-contractual documents detailing all conditions
5. Reflection period: Minimum 10 days between receiving FEIN and signing at notary
6. Prior notarial deed: Notary verifies you understand the conditions (free for the client)

Mortgage costs

Step 7: Signing at the Notary

The big day has arrived. Signing at the notary is the act that legally formalizes the purchase.

Preparation for signing

Days before:

• Confirm date, time, and notary with all parties
• Transfer down payment money to the bank (for bank check)
• Review the draft deed
• Prepare your original ID/NIE

Documents the notary/agent will bring:

• Purchase deed
• Mortgage deed (if applicable)
• Tax settlement
• Certificates and property documentation

During the signing

1. The notary reads the deeds in full (purchase and mortgage)
2. Verifies the identity of all parties
3. Bank checks or transfers are delivered
4. All parties sign
5. You receive the keys

After signing

Immediately:

• Change utility titles (electricity, water, gas)
• Register with the homeowners’ association
• Change IBI direct debit

In the following days/weeks:

• The agent settles taxes and registers with the Registry
• You’ll receive the registered deeds in 1-3 months
• Keep all documentation organized

Practical Expert Tips

After more than 27 years helping clients buy their homes, these are the tips I value most:

1. Don’t fall in love with the first property

It’s natural to get excited, but visit at least 5-10 properties before deciding. Comparison will give you perspective.

2. Price isn’t everything

A more expensive property in a better location can be a better long-term investment than a bargain in a less desirable area.

3. Calculate hidden costs

• Necessary renovations (get quotes before buying)
• Homeowners’ association fees (ask for the exact amount)
• Annual IBI tax
• Moving and initial furnishing costs

4. Location can’t be changed

You can renovate a kitchen or bathroom, but you can’t move the property to a better neighborhood or distance it from highway noise.

5. Always negotiate

The listed price is the starting point, not the end. A 5-10% discount is common and can mean thousands of euros in savings.

Common Mistakes to Avoid

Mistake 1: Buying without mortgage pre-approval

Visiting properties without knowing how much you’ll be lent is wasting time and risking losing your deposit if the bank later says no.

Mistake 2: Depleting all your savings

After buying, life goes on. You’ll need money for possible renovations, furniture, unexpected expenses. Always maintain a safety cushion.

Mistake 3: Ignoring community fees

A €300/month community fee is €3,600/year. In 10 years, €36,000. Always ask for the exact amount and if there are planned special assessments.

Mistake 4: Not verifying legal status

A property with hidden encumbrances, inheritance issues, or planning irregularities can become a problem for years.

Mistake 5: Letting yourself be pressured

“There are other interested parties,” “if you don’t decide today, you’ll lose it”… These pressure tactics are common. Make your decisions calmly and don’t sign anything under pressure.

Conclusion

Buying a home in 2025 is a process that requires preparation, patience, and professional advice. With proper planning, thorough research, and the right professionals by your side, you can turn this complex process into a satisfying experience.

Remember that you’re not alone on this journey. At Pedro Ochoa Inmobiliaria, we’ve been accompanying families in Barcelona in buying their homes for over 27 years. We know every neighborhood, every peculiarity of the market, and we’re here to guide you every step of the way.

Ready to take the first step toward your new home? Contact us for a personalized consultation with no obligation.

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Summary of steps to buy a home in 2025:

1. Evaluate your financial situation and borrowing capacity
2. Save 30-35% of the property value
3. Get mortgage pre-approval
4. Define criteria and search for properties
5. Visit, compare, and negotiate
6. Sign deposit contract
7. Verify property’s legal status
8. Formalize the mortgage
9. Sign at the notary
10. Enjoy your new home!