A mortgage in Germany made easy: Your path to homeownership in 10 steps
To help you turn your dream of owning a home into reality, Baufi24 has created a clear, step-by-step guide. With these 10 steps, you can navigate the process with confidence, and soon you’ll be holding the keys to your new home.
Buying a property is an exciting journey with many important decisions along the way. Follow these 10 easy steps, and you will be one step closer to owning your dream home.
Step 1: Do a financial check: What can you actually afford?
Before you begin your property search, it’s essential to understand your financial situation. Create a household budget to determine how much you can afford. Also consider your savings, which can be used as equity for financing. You can also use a free mortgage calculator to check your affordability.
Step 2: Determine what your dream home looks like and start searching
Define your needs and preferences for your future home. Location, size and features all play an important role. Create a clear list of your must-have criteria. Online property portals can help you find suitable listings in your preferred region. Or just maybe you’ve already found the home of your dreams?
Step 3: Arrange a visit and decide whether to make an offer
Arrange visits for properties that interest you, ideally during daylight hours and accompanied by another person. Use a checklist to assess key aspects, including the property's condition, features, and surroundings. You should also have the purchase price and the property itself reviewed by an expert to ensure they reflect market value.
By gathering information early, comparing conditions, and seeking professional advice, you can ensure your financing plan is built on a solid foundation.
Step 4: Make an offer
What happens next largely depends on the current housing market: how high demand is, whether the property is especially sought after, whether the price is realistic, and how determined you are to proceed. At this stage, it is essential to have a clear understanding of the financing options banks are likely to offer you.
A mortgage advisor can significantly reduce uncertainty by confirming your financial readiness. In competitive markets, they can also strengthen your position by reassuring the estate agent of your financial stability.
In addition, brokers assist by collecting and reviewing necessary documentation to identify any potential issues early on.
Step 5: Find the best mortgage for you
You can finance your home purchase with a mortgage. Since conditions vary between banks, it’s important to compare mortgages. Professional and independent brokers can take over this time-consuming work for you, find a financing solution with conditions tailored to your needs and support you throughout the entire process.
Step 6: Submit the financing application
Once you’ve chosen the right financing option, submit your application to the bank. This includes providing personal information, proof of income, and additional documents that show your financial situation.
Step 7: Receive your mortgage approval
After the bank reviews your documents and assesses your creditworthiness favourably, you will receive financing approval. This means your home purchase can move forward without obstacles.
Step 8: Sign the purchase agreement
Together with the seller, you sign the purchase agreement at the notary’s office. The notary certifies the contract and initiates the entry in the land register (Grundbuch). At the same time, a land charge (Grundschuld) in favour of the financing bank is recorded.
Your advisor will answer all your questions regarding bureaucracy, documentation and administration along the way.
Step 9: Pay for your home
After the contract is signed, the bank disburses the loan amount. Using these funds and your equity, you pay the purchase price to the seller and cover additional costs such as property transfer tax, notary and land registry fees, and, if applicable, the agent’s commission.
You are now the official owner of the property!
Step 10: Key handover: Time to pack your belongings
Once all payments have been completed, you receive the keys to your new home. Together with the seller, you document the property's condition in a handover report. After any refurbishment or renovation work is finished, nothing stands in the way of moving in.
Navigating the financing process can seem challenging at first. With Baufi24, you will find the best mortgage deal quickly and easily. They provide personal advice, assist you with your mortgage application, and accompany you throughout the entire financing process.