Owning your own home is a milestone in many people's lives, representing security, stability, and the realization of a long-cherished dream. As real estate agents, we are happy to share our experience in buying a home with you and provide you with a free financing calculator.
For many years, we have been accompanying our customers on their journey to realizing their dream home. Our extensive experience has taught us that certain steps are particularly effective in making this process smooth and efficient.
- 1. Calculate your budget
Before you start financing your home, it is important to draw up a detailed list of your income and expenses.
Before you set out to find your dream home, it is crucial to understand your financial situation clearly. A detailed look at your income and expenses will not only give you clarity about how much "house" you can afford, but also allow you to set realistic expectations. Take into account possible additional financial burdens, such as an addition to the family or career changes. It is important to know that banks do not grant unlimited loans for home purchases, and the amount of the loan depends, among other things, on your net income. This is your total household income minus taxes and social security contributions. Banks usually set a maximum of 35% of your net income as the monthly installment. Our budget calculator can help you determine the amount of financing you need.
- 2. Calculate your equity
Equity is the most important key to solid home financing and is the fastest way to open the door to home ownership.
The more you have, the better your chances of getting the best terms for your loan. Not only does it help you reduce the loan amount, but it also improves your credit rating with banks. But how much equity is enough? Our financial experts generally recommend starting with 20% to 25%. We know that it's not always easy to save up equity, which is why we're happy to help you find the best ways to optimize your financing. With various sources such as cash, savings accounts, or securities, you can strengthen your equity base and increase your chances of successful financing. However, do not use all of your assets so that you have a reserve to be prepared for unforeseen cost increases or financial bottlenecks.
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3. Compare offers
Obtain various offers and compare the terms and conditions. Pay particular attention to the effective interest rate, which takes into account all financing costs.
The effective interest rate takes into account not only the nominal interest rate, but also all additional costs, such as processing fees, account management fees, and other fees that may accrue over time. A low effective interest rate can significantly reduce your overall costs and help you save money in the long term. In addition, you should also pay attention to other terms and conditions such as the fixed interest rate period, the possibility of special repayments, flexible repayment options, and any costs for early repayment.
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4. Take advantage of subsidies
Check whether you are eligible for government subsidies for building or buying a house. KfW and other subsidy institutions offer low-interest loans and grants that can make it easier to finance your home.
The federal government and individual states offer various subsidy programs that provide low-interest loans or grants for building or buying a house. The best-known subsidy institutions include the Kreditanstalt für Wiederaufbau (KfW) and the Federal Office of Economics and Export Control (BAFA). Our experts are happy to help you explore the financing options available for your home and assist you with the application process.
- 5. Sign the contract
Once you have all the documents together and have decided on a financing solution, you can sign the contract.
You should not take this step without professional assistance. As experienced brokers, you can rely on us to help you carefully review the contract and ensure that all terms and conditions meet your expectations and are acceptable to you. Our advisors are available to assist you throughout the entire process and offer comprehensive support for all questions and concerns relating to your home financing.
Our extensive database contains many properties that could become your new home.
We place great importance on understanding the individual needs and wishes of our customers. We conduct detailed consultations to accurately capture their ideas for their home and develop a clear plan together.
We then support our customers in their search for the ideal location for their home. In doing so, we take important factors such as location, infrastructure, surroundings, and future prospects into account. Our goal is for our customers to not only get a house, but a real home that meets their individual needs and ideas and where they feel completely at ease.
