Construction financing on an existing plot

Hello dear community,

we already own a buildable plot of land without mortgages or land charges. Now my question is how the construction financing works in a planned house construction. Would you approach/clarify this only after a cost estimate by an architect, or already in advance, before even starting the planning? At that time, the construction financing volume is not yet exactly foreseeable. Or do I first plan with a maximum amount and see how much the bank will finance at most before I plan and then conclude financing at or below the budget accordingly?

Thanks for the help!

If I were in your position, I would go to a bank, Interhyp, Dr. Klein, etc., and get advice on how expensive the house can be at most with your income. You should also feel comfortable with the installment in the end and possibly still have some leeway in case it gets more expensive than planned.

With this budget, you then go to an architect or general contractor and check whether it matches your ideas.

Now my question is how the construction financing works for a planned house build.

Like with any other house build. - ask the bank about the possible budget - start discussions with the architect/house builder

I would first calculate myself: 3.5% interest, at least 1% repayment results in a budget with your max. rate/month. The value divided by 3500 gives the living area. If that works for you, you can have the architect make the first draft with cost estimate and then go to the bank.

1% repayment with 3.5% interest? Do banks still do it that way? So your recommendation would be to put money in and hire the architect, only to possibly find out later from the bank that financing is not possible? I consider this the wrong approach if one has no sense of what costs to expect and what a bank will even finance based on the available income.

1% repayment with 3.5% interest? Do banks still do it like that?

Most banks calculate with a maximum loan term of 40 years. With the interest rates now increased, you are at just over 1% repayment.
Second point, which is looked at if you are older, is whether there is a plan for the retirement period (pension sufficient for remaining debt or due life insurance or similar).
So yes, it is done like that – but it is no different than a few years ago, when 2% repayment was necessary for a 40-year term.

Your recommendation would therefore be to put money in hand and hire the architect,

No, seek an initial consultation. These are usually free (customer acquisition). And maybe look at model houses / consider catalog houses.

You can do everything in parallel.