From enquiry to notary appointment: the process

A mortgage seems complex but follows a clear process. If you know what happens when, the process stays relaxed and you are well prepared for the notary appointment.

The following overview shows the typical steps with realistic timeframes. Depending on the bank and the completeness of the documents, it can go faster or, in individual cases, take longer.

1. Conversation & documents

We clarify your project and compile the necessary documents together: proof of income, personal financial statement and property documents. The more complete they are, the faster it goes.

For employees, the income documents usually include the last three payslips and the latest tax assessment; for the self-employed, the financial statements and tax assessments of the last two to three years. For the property, the bank needs, among other things, the listing, land register extract, living space calculation and energy performance certificate; for flats, additionally the declaration of division and the latest minutes of the owners’ meeting. You do not have to obtain all of this yourself; much of it is supplied by the seller or estate agent, and we tell you exactly what is still missing.

2. Comparison & approval

We compare more than 600 banks and obtain a reliable financing approval, often within a few days. You need this for a binding notary appointment.

After the approval you sign the loan agreement. As a consumer you have a statutory right of withdrawal of 14 days, so you are not committing yourself in a rush. Only sign the purchase contract at the notary once the financing is in place. This order protects you from having to fulfil a notarised purchase contract without secured financing.

3. Notary & release of funds

After signing at the notary, the land charge is registered and the bank releases the funds. We accompany the communication up to the handover of the keys and beyond.

At the notary appointment itself, a protection period applies to consumers: the draft contract must usually be made available to you two weeks before notarisation so that you can review it at leisure. The notary reads out the contract in full and answers questions. After notarisation, the notary arranges the priority notice in the land register and the land charge for the bank. Only once all conditions for payment are met is the purchase price paid, typically four to six weeks after the appointment.

Keep an eye on commitment interest

Time can pass between signing the contract and the release of funds, with new builds even many months. Banks usually grant a commitment-free period of 6 to 12 months. After that, commitment interest is charged on the amount not yet drawn, often 0.15 to 0.25 percent per month. On €300,000 at 0.25 percent that would be €750 a month. For building projects with a long drawdown schedule, we therefore specifically negotiate a long commitment-free period.

After the release of funds

With the payment of the purchase price and the handover of the keys, the most important part is done, but a few points remain. The transfer of ownership in the land register takes place a few weeks later, once the tax office has issued the clearance certificate. Also remember the building insurance, which passes to you with the transfer of ownership and can be cancelled, and the adjustment of your standing orders. After the release of funds we remain your point of contact, for example when the follow-on financing comes up years later.

Reservation and time pressure when buying

In a lively market, speed often decides. Sellers and estate agents prefer to award the property to prospective buyers whose financing is visibly in place. That is exactly what the financing confirmation is for, which we can obtain at short notice once your documents have been checked. With a complete loan file, less than a week often lies between the viewing and a reliable approval. Nevertheless, do not let yourself be pushed into signing before the loan agreement and the draft purchase contract have been reviewed. A reputable seller accepts the few days a proper review takes, and a rushed purchase is the most expensive risk in the whole process.

Special case: new build from a property developer

When buying from a property developer, the release of funds works differently from buying an existing property. The purchase price becomes due in instalments according to construction progress, as prescribed by the German Estate Agent and Property Developer Ordinance. The bank draws down the loan in portions accordingly, which is why commitment interest and a long commitment-free period become particularly important here. Until completion you usually pay interest only on the part already released, often alongside your current rent. This double burden belongs in the household budget from the start so that the construction phase does not become a nail-biter.

What you can already take care of in parallel

While the bank and notary are working, you can prepare a few things. Obtain quotes for building insurance and, if applicable, term life insurance, clarify the moving date and check which tradespeople need to be booked early. A look at the future advance payments for electricity, gas and water at the new home also saves surprises later. This way you make good use of the waiting time between notarisation and handover.