A 10-Step Guide to Securing the Right Financing
The aspiration to own your own home is a significant one, yet the process can often fell overwhelming. To ensure you have a clear understanding of the process and its timing, this guide will walk you through the entire purchase process, including the financing steps.
If you’re wondering “How does buying a property in Germany actually work?” or “When should I organize the financing?” – we’ve got the answers, and you will find them here.
1) Search for a Property and Clarify Key Details
- Before deciding on a property, clarify the essentials:
- Is the property currently occupied? (owner, tenant, or vacant)
- When’s the seller’s preferred date for the notary appointment?
- When’s the handover or move-in planned?
- Purchase Price and Inventory
The purchase price forms the basis of your financing. Inventory, such as a built-in kitchen or furniture, is typically not considered financeable. However, if it’s listed separately in the contract, it doesn’t count towards the property value. - Acquisitions Costs
These costs vary depending on whether the property is being built, purchased from a family member, or purchased from a third party. Usually tehy cannot be financed and must be paid from your savings:- estate agent’s commission: approx. 3% + VAT
- property transfer tax: 3.5% – 6.5%
- notary and land registry service fees: approx. 1.5-2%
- Renovation, Refurbishment, Modernisation
Depending on the measures, financing up to 100% is possible. - Other Costs
Moving, furniture, etc. cannot be financed and must be paid from your own funds.
2) Check Your Equity
- Review you current savings and consider the possibility of family contributions.
- Decide on the amount to use and how much should be kept as a buffer. A financial cushion provides security for unexpected expenses.
3) Book a Consultation With Me
- Tip: Even there is no specific property, an in-depth consultation is worthwhile. Afterwards you will know exactly what you can afford, and what your ideal financing structure looks likeen.
What to expect:- Duration: approx. 90 minutes (usually via video call)
- Detailed analysis of your personal situation
- Tailored financing solutions
- Clarification of the next steps
- Goal: a personalised financing proposal that fits your plans perfectly.
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4) Gather Your Documents
- Use my checklist to collect all relevant documents. I am happy to assist with communication between seller, estate agent, or developer.
5) Submitting Your Mortgage Application
- I prepare your application in full and submit it digitally to the lender that suits your needs best.
- The bank or insurer conducts a thorough review of your credit history and submitted documents.
- Once approved, the loan contract will be sent directly to you.
6) Review of Loan Contract
- We go through the contract together in detail to ensure that all terms and conditions are understood. I will explain all the important points, answer the questions you may have, and inform you of the documents required for the payout.
- Following this, you sign the loan agreement.
7) Identification and Return of Documents
- Identification is completed via PostIdent or VideoIdent. Please ensure that you meet the stated deadline, as the signed contract must be received by the bank within one week to guarantee the agreed terms.
8) Notary Appointment
- Within 14 days after signing the loan contract, the notary appointment should take place:
- Signing the purchase agreement
- Initiating the land charge (to ensure the bank’s security)
- Sending the notary documents to the bank
- Tip: Arrange the appointment with the seller or developer well in advance. In the unlikely event that the purchase falls through, it is essential that you remain within the withdrawal period for the mortgage – please contact me if you require further clarification on this point.
9) Paying the Acquisition Costs
- Following the notary appointment, you will first receive invoices from the estate agent and notary.
- The property transfer tax assessment will be issued approx. two weeks later, and must be paid within four weeks.
- Invoices from the land registry will be issued at a later date.
10) Payment of the Purchase Price and Handover
- The notary will inform you of the relevant details regarding the transfer of the purchase price.
- If your are contributing equity, you pay your share first and then send proof to the financing bank.
- Once all the specified payout conditions have been met, the bank will proceed with the transfer of the remaining amount.
- Then comes the best part: the handover of the keys!
Congratulations – you are now a proud property owner.
Conclusion:
Buying property and arranging the right financing is a major step. But with the right guidance, it becomes clear, structured, and manageable.
I support you every step of the way, from the initial idea to receiving your keys – independently, personally, and with a holistic perspective.
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… as for insurance cover:
- Buildings Insurance
It protects your home in case of damage. The existing policy automatically transfers to you as the new owner, but you have a special right to cancel within four weeks after the land registry update (not after key handover).I strongly advise you to have the policy reviewed by an experienced insurance broker.
- Additional Protection:
During a personal consultation, we will discuss the protection measures you already have in place for your property, yourself, and your family – and which additional arrangements we recommend.
