Checklist: Real estate financing

Despite inflation and higher interest rates, buying a property is still possible. However, property seekers must adapt to the new situation on the real estate market. The question of financing is particularly important now. Those who are well prepared here have a better chance of finding a suitable property. With our checklist, you always have an overview of what you need to think about.

Property seekers are best advised to clarify the financing before starting their search. Otherwise, the dream of owning your own home can quickly come to nothing. The following should be considered in preparation.

Important questions before searching for real estate

• How much property can I afford? Or how much can I pay per month for a property? Also think about ancillary costs such as taxes, insurance, heating and electricity.
• Should I build a house or buy an existing property?
• What financing options are available?
• How much equity do I need?
• Are there any state funding opportunities?
• How do I determine the financing requirement?

What documents do I need for the property?

• New building
• Architect's contract or the design
• Current excerpt from the land register
• Parcel map
• Property purchase agreement or draft
• Extract from the register of building encumbrances
• Applicable development plan of the municipality/district
• Approved building application
• Building description
• Approved construction plans/construction drawing
• Gross floor area calculation
• Calculation of living and usable space
• Proof of building shell insurance
• Construction cost calculation (including documents on development costs and information on planned own work)
• Estimate of future incidental housing costs
• Existing property
• Copy of the purchase contract or draft
• Current excerpt from the land register
• Parcel map
• Exposé of the property
• If available: Building plans and building description
• Calculation of living and usable space
• Extract from the register of building encumbrances
• Appraisal, if applicable
• Cost plan for modernization measures, if applicable (including cost estimates)
• Meaningful photos of the property
• Estimate of future incidental housing costs
• Copy of the building insurance
• Declaration of division (when purchasing a condominium)

What documents do banks want to see from me?

• Salary/wage statement for the last three months
• Proof of the previous year's income
• Income statement previous year
• Income tax return
• Proof of own funds (e.g. bank statements)
• Signed annual financial statements / income statement for the last two years (for self-employed persons)
• Signed current business evaluation (for self-employed persons)
• Income tax assessments for the last two years (for self-employed persons)
• Schufa information
• Identity card

Are you unsure whether or how much property you can afford and where you can find an affordable one? Get in touch with us! We will be happy to advise and support you in your search and financing.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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