Step 1: Search for a property
The first step is to look for a house or a flat. You should answer the following questions beforehand:
- Do you want to buy a house or a flat?
- In which part of town should it be located?
- How big should the property be?
- Old or new building?
- How much modernisation will be required?
Eventually you will find a flat or house that meets your expectations.
Step 2: Clarify the financial framework
Can you afford this property? First you need to prepare an overview of your personal finances.
- How high is your current income?
- What will your income be in the next few years?
- How much can you pay monthly for your future house or flat?
- How much money do you have available as equity capital, what reserves will remain afterwards?
- If it applies to you: What is your residential status (specifically for non-German citizens)?
Once you have clarified these questions for yourself and the object of your wishes is perhaps already within reach, you should make an appointment with us as a financing agent. During our talks you are always there live: you can see the different interest and repayment rates and you can compare the offers of all banks. Not every bank is suitable for every customer and the most favourable interest rate is not always the best financing for you.
After our first meeting, you will know the maximum amount of your financing, how much equity you need to have and how high your future monthly instalment will be. You will also know which documents you need to provide for the financing.
Another advantage, especially in these times of high property prices and rising interest rates: With this knowledge, you are also much better equipped for the purchase negotiations for your property and can better negotiate the sales price.
Step 3: Clarify the financing
The time has come: You have found the property you want and have reached an agreement with the seller on the purchase price. You will receive the necessary documents for the purchase of a property from the seller (extract from the land register, cadastral map, calculation of living space, dimensioned floor plan, photos, energy certificate, and declaration of partition of the property if applicable).
With these and your personal documents (the last three salary statements, the last income tax assessment and the last application for the income tax return, as well as proof of the equity capital you want to use for the purchase), we apply for the loan at the bank.
Now it's a matter of waiting and being patient.
Finally, the time has come. The bank has checked and sends you the loan agreement. As an intermediary, we receive a copy of the loan agreement. Together we check it. In Germany, you still have a legal right to cancel a loan agreement 14 days after you have signed it.
This means for you: As soon as you have the credit approval of the bank, you should conclude the purchase contract with the notary within the next 14 days.
Step 4: The purchase contract
The contract of sale regulates everything that has to do with the purchase of the property.
The purchase price is paid as soon as the notary has made the purchased property legally ready for sale. This includes, among other things, the redemption and deletion of all existing value-reducing entries in the land register.
Furthermore, you will be recorded in the land register of the purchased property as the new owner. This is the so-called conveyance ("Auflassungsvormerkung"). You also arrange the creation of the land charge as security for your financing bank at the notary's office.
After the purchase contract has been concluded, you will receive many invoices, all of which unfortunately have to be paid. These include the bills from the tax office, the land registry, the notary and the estate agent.
When the notary has settled everything, he sends you the due date letter. You will be asked to pay the purchase price within 14 days.
Step 5: Disbursement of the loan and registration in the land register
The loan contract also regulates different things in order to receive the money from the bank for paying the purchase price. These are the disbursement requirements.
You have to provide all the required collateral for the bank. Essentially, this is the creation of a land charge for the amount of the loan.
As soon as you receive the due date letter from the notary, the purchase price must be transferred to the bank, first your equity and then the loan.
Some time later, you receive a message from the land registry that you are now registered as the owner of the property in the land registry.
It's done, you are a house or flat owner. Congratulations!
