Buying a house without a mortgage loan

Hello

We are completely inexperienced when it comes to buying a house.
We found a small house in a village. The location is a no-go for many, but perfect for us. A lot needs to be done to the house.
The lady would like €125,000, but she is working without a real estate agent. There is no exposé, no energy certificate, actually there are no documents at all, only the purchase contract (from her), land register excerpt, and plot maps.
She wanted us to inquire at the bank about which documents we need. I told her that. Apparently, it is too much effort for her. She would still order the energy certificate, and she would also do the living area calculation. But not much more, actually.

Am I being too naïve if I ask whether there are other ways to finance the house without a mortgage? Should I be worried because the homeowner basically doesn’t want to deal with obtaining documents?

Regards

What is still missing and how critical is it? If you are doing a complete renovation anyway, I could imagine that a bank would also finance it without an energy certificate. Which banks have you asked so far? Local branch banks are more expensive, but often have a bit more leeway than an online bank, where everything is decided by the computer.

Am I being too naive when I ask if there are other ways to finance the house without a mortgage? Should I be worried because the homeowner really doesn’t want to deal with gathering documents?

How much equity do you have and how much is still missing? Smaller building loan contracts are usually granted without collateral. Private loans might also be an option to gather the money. Once you are the owner, you can get the documents yourself and finance the renovation through the bank.

We have 20,000 equity. Yes, that is very little, we know that and it is due to our past. We cannot change it, but that’s how it is. Currently, we cannot get more than €200,000 as a mortgage loan. So far, we have only inquired with online providers. A complete renovation was actually not planned. The roof is three years old. The gas boiler needs to be replaced (HW through it), plastering, and flooring need to be done. The bathroom is brand new. Mainly, heating is done with the brand new wood stove. Our finance person (insurance agent who also handles real estate financing) says we shouldn’t buy, it would be a fixer-upper?!? The lady still lives there herself, nothing musty, nothing damp. Nothing that would make me say the house needs to be demolished.

Our finance person (insurance agent who also does real estate financing) says we shouldn't buy, it would be a building ruin

Welcome to the forum, he should justify that to you with facts and if they are comprehensible, I wouldn’t buy, the man will approach it neutrally, without emotions. More and more sale signs are now appearing on the houses, you are under no pressure to buy.

Yes, we actually (felt) pressured to buy. Our apartment is too small, we are both almost or over 40, and we just no longer feel comfortable and safe here. There are photos of the house, nothing more. And because the bricks are exposed in two photos, he considers it a construction ruin. However, the previous owners of the lady left the bricks exposed for aesthetic reasons, they liked it that way. A lot needs to be done, we are aware of that. But a plot of this size with a habitable house in this location is practically never found. The basement is dry, the roof watertight, the house was super warm thanks to the wood stove (even too warm for me). Timber-framed house, without historical monument protection. The lady wants to sell it because she separated and the work is too much for her.

I don't want to talk you out of it,
Be sure to go through it with a professional before purchase.
The 300-500€ (estimated) will save you from a disaster