Owning your own home is a milestone in many people's lives, representing security, stability, and the realization of a long-held dream. As a real estate agent, I am happy to share my experience in buying a home with you and provide you with a free financing calculator.
For many years, I have been helping my clients realize their dream of owning their own home. My extensive experience has taught me that certain steps are particularly important in order to make this process run smoothly and efficiently.
- 1. Calculate your budget
Before you start looking for a mortgage, it is important to draw up an accurate list of your income and expenses.
Before you set out to find your dream home, it is crucial to understand your financial situation. 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. Also take into account any additional financial burdens, such as a growing 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 normally 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 equity
Equity is the most important key to solid home financing and is the fastest way to get your own home.
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, it also improves your credit rating with banks. But how much equity is enough? My 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 are 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, don't use all your assets to build up a reserve so that you are 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 all financing costs into account.
The effective interest rate takes into account not only the nominal interest rate, but also all additional costs, such as processing fees, account maintenance fees, and other fees that may arise over timea low effective interest rate can significantly reduce your total costs and help you save money in the long term. In addition, you should also pay attention to other conditions such as the fixed interest 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 home. KfW and other funding 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 home. The best-known funding institutions include the Kreditanstalt für Wiederaufbau (KfW) and the Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA). My experts will be happy to check the funding options for your home financing 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 at your side throughout the entire process and offer comprehensive support for all questions and concerns relating to your home financing.
My database contains many properties that could become your new home.
I place great importance on understanding the individual needs and wishes of my clients. I conduct detailed consultations to gain a clear understanding of their ideas for their home and to develop a clear plan together.
I then help my clients find the ideal location for their home. In doing so, I take important factors such as location, infrastructure, surroundings, and future prospects into account. My goal is for our customers to not just get a house, but a real home that meets their individual needs and ideas and where they feel completely at ease.
