Construction financing despite Schufa entry

Hey I have a question that will probably be answered differently soon (through a bank).

It’s about the following: my wife, my daughter, and I want to buy a house, but unfortunately last year I had two chargebacks from an installment purchase due to sheer stupidity. I changed banks and the installment purchase through Santander was quite chaotic (I was "supposed" to pay installments of €60 but only €13.49 was always withdrawn and so on, and at some point they said I could just transfer the difference every month). Well, I got fed up and paid off the "remaining debt" in one lump sum in December.

I know small loans are always unpleasant and in my defense, we moved the year before last and paid €15,000 for the entire move including deposit, new kitchen, and so on, and still needed a tumble dryer, and since I don’t like buying cheap, I bit the bullet...

Anyway, now my question is: could this end up negatively affecting us?

A few key data points:

House cost 130,000
Additional costs approx. 18,000
Modernization 50,000

There are two residential units in the house; one is officially rented and registered to my sister-in-law.

Cold rent 400 plus additional costs

Other income:

Wife’s salary 1,850
Child benefit 205
My salary 1,980

Both permanently employed in the public sector with Christmas bonus

No loans, car is paid off, no debts

Starting capital (after the last move) a measly 10,000 and should not be included. Ergo full financing.

Construction child bonus will be applied for as soon as we can.

Current cold rent 940,-

Before any “why didn’t you buy immediately” questions come up, I say: that’s just how it is!!!

Thanks a lot for reading and for helpful tips, maybe someone also knows another tip for government funding that we could take advantage of.

Regards, Marco

Are you sure that you now have an entry in the Schufa? You can order a data copy (according to Art. 15 GDPR) directly from Schufa free of charge.

Don't see the Schufa entry there as the problem.
Where are there such cheap two-family houses?
In my opinion, the current cold rent and the targeted purchase/renovation costs do not match.
Even the rent for the sister-in-law seems disproportionate (high).

If the bank values the house at around 180k, you should be able to comfortably service the loan from the current cold rent. Even if you have to add the 18k ancillary costs on top expensively.
It would be better to find somewhere to cover these. Aren't there any investments / parents or similar?

Such cheap houses are available in Witzenhausen

There is also a catch: I have to drive further every day and I will have €200 fuel costs plus €100 "repair reserves"

Rent too high?

It is an old half-timbered house of which 250m2 are already "modernized," the floors are still missing, walls still need plastering, and so on, lots of little things, but windows, roof, heating, and so on are good for now!

She gets a 110m2 apartment with a fitted kitchen, freshly renovated, for €400. The rent index there is 5.60, so I think that would be fair!?

I am working on the Schufa!!

Imho, the current cold rent and the intended purchase/renovation costs do not match. Even the rent for the sister-in-law seems disproportionate (high).

I don't quite understand?

Well, the interest rate won’t be a bomb