Building loan is obstructing

But I wanted to find someone within the next 1-2 weeks with whom I can reliably build.
The loan application is initially just submitted and then we’ll see what the bank says or what documents they still want.

At first only a loan inquiry was made...

Hello baschti,

somehow you are confusing the terms - or are we?

Was only a loan inquiry made or a loan application?
A loan inquiry is a kind of preliminary inquiry to see whether the financer would basically be willing to finance your project within the set framework. Nothing has happened at this moment - you can still (as far as necessary and bearable for you) change everything (loan amount, terms, fixed interest periods, etc.).

With the loan application you are one step further. Here you make a binding request to the financer. They will then, for example, check your credit report and send you the contract documents which must be signed and sent back within a certain period XY. Once signed, the loan is fixed (apart from a right of withdrawal). From this point on, the interest-free provision period begins to run - once this time has passed, you have to pay commitment interest for the not yet drawn loan amount.

I can also recommend that you check whether your financer would basically finance you. Because you only build once (presumably). Therefore, you should not put yourself under pressure when choosing your construction company and take your time to look and check.
For us, it took over a year from the first talks with potential companies to the contract signing - if we had been asked beforehand, we would have estimated a maximum of 3 months.

We only finalized the financing 2 weeks before signing the contract. Had we done that at the beginning of our talks, I would already be paying commitment interest now with the start of construction - aside from the fact that I now know how much the house will (hopefully) actually cost - with the initially estimated amount we would now be hopelessly underfinanced.

Hello baschti,

as already mentioned by several previous posters, I can only recommend that you put the financing request on hold.

It really doesn't help you to request amount X now if you later need amount Y.

The willingness of the insurance company to create another offer within a very short time is also not necessarily given.

In the worst case, the insurance agent might assume that you don't know what you want and won't create any offer at all...

Therefore: Find a reliable construction partner and determine the real financing needs based on a serious offer and taking into account the expected incidental costs.

Only then go to the insurance company.

Regards,

Dirk

I can only agree here as well. In the end, the total amount is still not enough, and then? Expensively refinancing?

The topic of house building should be approached step by step (and in the right order). Otherwise, there will be a nasty awakening in the end. Trying to find a partner by hook or by crook within 2 weeks is certainly the wrong approach.