Good day everyone,
I am completely new here in the forum and when I registered, the username Al Capone spontaneously came to mind, I don’t know why either. I have been a mortgage broker for about 30 years and I think I can give one or the other good tip regarding the question asked.
Basically, building a solid and individually suitable financing is only possible after knowing all relevant parameters. For example, I send out a questionnaire of about 5 pages that, according to the current status, covers all important areas of the interested parties. However, even with that knowledge it is unfortunately not possible to protect oneself against all uncertainties; but I think that can’t be the purpose either. Motto: First things come differently and second differently than you think.
From the question, I read “my girlfriend” and that reminds me that very few people think about what happens if the relationship does not last or, for example, ends due to the death of a partner. Therefore, my urgent appeal is to discuss these points with a trusted lawyer and see how to put a fair agreement into a contract. In my opinion, this is one of the most important points of all.
Another one would be to uncompromisingly make a personal financing check to determine where you stand yourself and what might be possible. Planned changes such as desire to have children, etc. should also be taken into account here.
Once that is done, the question arises about a suitable spatial requirement or housing program that is practical and acceptable today; but also must be easily adaptable later. Often this is not possible later at all.
I often experience in my consultations that future builders have completely unrealistic ideas about floor plans, etc. (e.g. pointed bay window – which may look good aesthetically, but is very expensive and offers no or only very limited usability) or equipment details that simply have not been thought through.
The biggest and most important task now is to create a floor plan with which you are super satisfied – and not just today, but also tomorrow.
Once the floor plan is fixed, the plot follows; because the floor plan with its dimensions basically dictates the plot.
Once the plot is found, a soil report should clarify whether it can be built on without restrictions and what to basically expect. Nobody buys a car for 60 - 80 or 100,000 € and just trusts their gut feeling. Logically, one lets an expert, TÜV, or whoever check it so as not to make mistakes. It should be no different with the plot, right?
Now you also know what additional costs will come up; because the buildability defines pretty much all other costs. With additional costs, you shouldn’t be fooled; because it is not uncommon for sums of 30,000 euros or more to accumulate.
So plot plus additional costs already make up the largest part of the future investment.
Now it’s about who will build the dream house. This is the part that future builders have to figure out for themselves; because there are well-known pros and cons for everything. So whether "wood house" or "solid construction," whether "turnkey" or another production variant, these are points one can discuss; but in the end, the decision...
If you plan own work (muscle mortgage), you should critically set up a time account. Basically, a self-builder needs about 30% more time than a craftsman who performs this task every day. Usually, the quality is unfortunately not the same either.
Then you should see who is helping, what people can do, and how reliable they are. Here too you can derive entries to the time account. Please do not forget: helpers must be insured by the BG; otherwise it can turn out badly.
Once you have recorded all this, the house price and the materials you still have to buy result. Only the labor cost is actually saved.
Now, after subtracting the equity you want to use, the financing amount results. Here you first look at all available government grants and low-interest loans or subsidies that can be used. The rule here is: "Stupidity does not protect against punishment," because once it’s gone, it’s gone and no "I didn’t know" helps.
The "residual financing" is now shaped according to the wishes of the future homeowners, i.e. all relevant requirements are implemented. Important and often overlooked is, for example, whether financing may be resold or not. This can have fatal consequences.
If you have done the work this way, you will experience a lot of joy in the new house – feel comfortable – gladly come home – and also take the mail from the mailbox without dark forebodings. Speaking of which: check legal protection before the construction project; although a certain part of the building is not insurable, there is still a large part for which it is good to know that you have functioning legal protection.
And so it doesn’t get too long here: A good mortgage broker is always worth their money; because mortgage financing usually does not work with just a few clicks on the internet; even if people like to make you believe that. That is also why the posted financing calculators are only conditionally useful. The actual reason why they exist is so that the interested party stays on the page and hopefully then submits a financing request.
I hope my brief explanations have helped a bit.
Wishing you a nice day