Step by step guide to buy a house in 2025 | Complete guide

Step 1: Assess your financial situation before buying a house

The first step to buying a house is to evaluate your financial situation, since this will determine the type of property you can afford. In fact, banks usually assess this too in order to offer you the best mortgage loan. These are the aspects to consider:

Calculate your borrowing capacity

Evaluate your income and expenses, as these will determine how much you can invest in buying a house. As a general rule, monthly mortgage payments should not exceed 30–35% of your net monthly income.

Minimum savings needed for down payment and additional expenses

Buying a property doesn’t just mean paying monthly installments. When applying for a mortgage, you’ll need savings to cover the down payment and notary fees. The down payment is usually 20% of the property’s total value, and notary and other fees range between 10% and 15%, so you’ll need an extra 35% in savings.

Check your credit history

Try to reduce any outstanding debts before applying for a loan. Banks will review your credit history to assess whether you’ve been consistent in repaying other loans.

Once you've evaluated your financial situation, you’ll be able to determine how much you can invest in buying a property and continue with the step-by-step process.

Step 2: Seek professional advice when buying your home

As mentioned before, buying a house is one of the most significant decisions in life. That’s why having the help of a professional can make a real difference.

Real estate agents will advise and guide you based on your needs. They’ll also accompany you throughout the process to make it much easier. At Engel & Völkers, we don’t just show you your dream home—we support you, keep you informed, negotiate the price, and streamline the entire process. Contact our team and start your new future.

Step 3: Define your needs and preferences before house hunting

Before continuing with the next steps to buy a house, you need to consider which factors are important when choosing the right one. Depending on your goal, you’ll need one type of property or another. It’s essential to be clear about these points:

Type of property

What kind of house would you like to buy? Take your time and weigh the pros and cons of each option, as this is a major decision. Some of the most common options include:

• New build or second-hand home.

• Flat or detached house.

• Ground floor or penthouse.

• Standalone or semi-detached.

• Etc.

Choose at least a couple of options and define the rest of the requirements. This may help you better determine what the property should be like.

Ideal location

Where do you want it to be located? The location is the most important element since it can’t be changed later. In this case, ask yourself questions such as:

• Should it be in the city center?

• Would I rather be on the outskirts?

• How close should it be to work?

• What services would I like nearby?

• Do I need access to green areas?

Essential features

Lastly, think about the features your future home must have in order to meet your needs:

• Square meters.

• Number of bedrooms.

• Number of bathrooms.

• Terrace.

• Elevator.

• Garage.

• Garden.

These questions will help you filter listings and find the right home.

Step 4: Get pre-approved for your mortgage

Before continuing with the steps to buy a house, you can request information from various banks about mortgages, in order to understand the conditions. Requesting a pre-approval for your mortgage from the bank makes it easier to purchase a home because it allows you to:

• Define a price range for your home search: depending on the loan amount, you can determine what type of properties are within your reach.

• Decide what type of property you can buy: the mortgage amount will also determine other aspects, such as the number of square meters or the location.

• Give a quicker response: having the mortgage pre-approval allows you to close the deal faster with the seller, without fear that another buyer will step in first.

• Speed up the process: thanks to this prior procedure, you’ll be able to carry out the purchase in a shorter period of time.

It’s essential to note that there are specific aids available for purchasing a home for individuals under 35 years old, as long as it's their first home and they meet the requirements, which may vary depending on the autonomous community in which they reside.

Step 5: Start the search for your future home

Now is the time to find the property that meets your needs and requirements, considering how much you can invest. To do this, you can go about it in various ways:

• If you have the help of a real estate agent, they will be the one to provide you with various options according to your preferences. A professional in the sector will always make the process easier, faster and safer than doing it on your own. In addition, they can negotiate for you if necessary.

• Search in real estate portals: major portals provide a wide variety of properties that you can filter according to your needs, such as price, square meters, number of rooms, location, etc. Apply the filters you consider necessary and select the ones you like best.

• Search on social media: another option is to find available properties on social networks like Instagram or TikTok, although the process will be longer and more tedious than with a professional.

When you find several houses that match your priorities, don’t hesitate to contact the owners and visit them. It is advisable to compare several before making a decision and choose the one that best fits what you're looking for. At Engel & Völkers we want to help you find the house of your dreams without mistakes, shall we work together?

What to observe during visits?

When visiting the property, there are various aspects you should see or ask about before buying, such as:

• Why it is being sold.

• What is the condition of preservation.

• What the monthly consumption is.

• What Energy Certificate it has.

• When the last renovation was.

• If there are any pending assessments.

• Observe the condition of the place.

• What services exist nearby.

• Talk to the neighbors to get to know the neighborhood.

To answer some of these questions, it is important that you request a Simple Note (Nota Simple) of the Property, as it contains relevant information, such as charges. The support of a professional in the sector will help you resolve these issues, and even find the best option.

Step 6: Make an offer on the house and negotiate

Continuing with the steps to buy a house, if you’ve already found the ideal one, it’s time to make a formal offer to the seller. Try to negotiate with them if possible—perhaps the property needs some improvements or you don’t need the furniture.

Before doing so, remember to consider the market price or current trends, as these will help you negotiate. Our annual report can help you understand the sector, such as local pricing, and know how to act in each situation.

In this regard, having the help of a real estate agent is essential. This expert has the negotiation skills to find the most favorable offer for both parties and also knows the market well. Engel & Völkers not only helps you find the property you're looking for, but also makes the entire process easier. Get in touch with us and find your home today.

Step 7: Sign the deposit contract

One of the most important steps when buying a house is reaching an agreement. To ensure that the seller commits to you — and doesn’t sell the house to a third party — it is advisable to sign a deposit contract. This is a pre-agreement that outlines various aspects such as:

• Conditions of the sale.

• The price.

• Consequences of breaching the contract.

• Amount paid — as a financial deposit — which will act as a reservation.

Our real estate agents support you at every step to avoid mistakes, resolve doubts, and speed up the buying process. Want to relax and enjoy a stress-free purchase with the support of experts? We’re waiting for you.

Step 8: Secure the final mortgage

Once you’ve signed the deposit contract, gather all the necessary documentation and choose the bank you want to work with. Request the type of mortgage that best suits your needs (fixed, variable, or mixed) and wait for the bank’s response. They must provide you with the mortgage’s FEIN (European Standardised Information Sheet).

This is a binding document and includes all the conditions of your future loan:

• The name of the borrower(s): your personal information.

• The name of the bank granting the mortgage loan.

• The total amount of the mortgage.

• The type of mortgage: fixed, variable, or mixed.

• The duration of the loan.

• Who supervises the loan: this will be the Bank of Spain.

Once you have the mortgage’s FEIN, you have 10 calendar days to review it and decide whether to accept it.

Step 9: Sign the public deed before a notary to purchase your new home

Finally, once you’ve accepted the bank’s offer for your mortgage loan, it’s time to formalize the transaction with the seller. In other words, you’ll need to sign the public deed of sale before a notary. These are some of the documents you’ll need:

• A valid DNI or NIE (for all buyers).

• Proof of payments made.

• The signed mortgage contract with the bank.

• Proof of the bank transfer for the purchase amount.

Pay the applicable taxes

In addition to signing the deed for your new home, it’s essential to comply with your tax obligations, such as paying the taxes related to the purchase. You’ll need to pay the ITP (Property Transfer Tax) if it’s a second-hand home, or VAT (Value Added Tax) if it’s a new-build property.

Step 10: Key handover for your new home

Once you’ve completed all the previous steps, the final stage includes a few last formalities after buying your home:

• Take out home insurance: if your bank didn’t include a home insurance policy when signing the mortgage, it’s advisable to arrange one to protect against any unexpected incidents.

• Activate utilities: if the home has been unoccupied, it’s possible that water, electricity, and gas services are inactive. If so, you’ll need to reconnect them.

• Change ownership of utilities: if utilities are still active, it’s best to change the ownership as soon as possible so you can take responsibility for future payments.

How to Avoid Mistakes in the Step-by-Step Process of Buying a House

The steps to buying a house can seem overwhelming if you're unfamiliar with the process or the required documentation. If you want the support of a professional who will guide you through every stage—from the search to signing before a notary—an Engel & Völkers real estate agent is your best option.

With their international experience, network of exclusive properties, and personalized advice, you’ll have the peace of mind that comes from being in expert hands. Get in touch with Engel & Völkers today and begin your journey toward the home of your dreams with the best partner by your side.

Con su experiencia internacional, red de propiedades exclusivas y asesoría personalizada, tendrás la tranquilidad de saber que estás en manos expertas. Ponte en contacto con Engel & Völkers hoy mismo y empieza tu camino hacia la casa de tus sueños con el mejor aliado a tu lado.