Construction financing through intermediaries or local banks

Not quite right.

For the first financing (purchase/new construction), the lending value does not play a role in the conditions, but rather the purchase price or construction costs are relevant.
The lending value only decides whether the bank approves it or not! (if it is approved, then at the conditions that have been determined)

No. I disagree

Not quite right.

For the first financing (purchase/new construction), the lending value does not play a role in the conditions, but rather the purchase price or construction costs are relevant.
The lending value only decides whether the bank approves it or not! (if it is approved, then at the conditions that have been determined)

That is nonsense! I am very surprised by your statement and very puzzled. Construction costs are currently always above the real value, as are land prices. That means construction costs plus land costs are actually always higher than the estimated market value of the property after completion. The bank does not care at all if you invested 750k euros when in the end the appraisal value is only 600k euros. The lending value will always be calculated on the 600k euros. You should know that too. Banks also adjust the conditions accordingly, that is a fact. For example, if you calculated with a 79% lending value but the bank comes to 85%. So suddenly the bank will offer the conditions in the range 80-90 or 80-85, depending on the subdivision. Don’t believe it? You should.

Why should a financing applied for with a 79% lending value be rejected by the bank if they would also finance it with the slightly higher interest rate? Which platform do you use?

My bank has estimated the value of the property at 880,000 euros, appraised, etc. It was purchased for 820, minus 32k subsidy = 788,000. Can that be possible? Is the interest rate then better?

I have my doubts: 1. How do you want to seriously evaluate something that doesn't even exist yet? Until the house is ready to move in, a lot can still change. Both in the house itself and in the real estate market in general. 2. Why should a developer miss out on €60,000? My theory: The bank is required to evaluate it. But since point 1 applies to almost all new builds, it is just a formality. Besides, the bank knows that their appraiser Müller always overvalues. But it doesn't matter because it's a formality, and it also looks better if the gentleman from the banking supervision wants to reconcile the loans with the collateral. ;)

Regarding my project:
Mortgage lending value at the time of application = x euros

Construction costs x + 25k euros without external facilities and carport, so actually even more. Total investments therefore x + at least 100k euros.
Mortgage lending value according to the bank x - 12k euros.

Thus just above the threshold and therefore worse conditions. Can I do anything? No! Of course, I could ask other banks, but in the meantime the conditions are significantly worse. It is frustrating because with 5k euros less in loan amount, the conditions would have been better or there would have been plenty of room for a higher loan with worse conditions.

I have my doubts about that:
1. How do you want to seriously evaluate something that doesn’t even exist yet? Up until the house is ready to move in, a lot can still change. Both in the house itself and in the real estate market in general.

An appraisal of new-build properties is straightforward and also common practice. There are companies that specialize in this. As a rule, the bank has to secure the value of the property, and that can only be done through an appraisal. Some banks basically assume the construction costs and calculate based on that. In the background, however, an appraisal must also take place, whether it happens with a fine-toothed comb or not. Don’t know. Probably there are banks that finance a house for 900k euros even though the value after completion is only 600k euros. Of course, the bank can also recognize a property for 900k even though that would be at 115%, and then pay out the 600k for the 70% condition; that is then goodwill/customer acquisition on the part of the bank. The borrower does not take the fictitiously assumed 900k euros; the bank would certainly have a problem with that.

In my case, it was simply bad luck, or the bank knew that I would not get a competing offer. The bank could also simply say "No thanks" after x weeks of review. An application by no means guarantees a loan. The customer can choose a bank and the bank can choose the customer. It’s just mutual.

An appraisal of new construction properties is easy and is also common practice. There are companies that specialize in this. Usually, the bank has to ensure the value of the property and this can only be done through an appraisal

I have never denied that an appraisal must take place. Only that an appraisal before completion is particularly meaningful. Whether I now add land and construction costs or calculate the more expensive plus half of the cheaper one... it is all irrelevant if the result is a poorly built house or the house is never completed. (
(Scout ID 130771316 is definitely such a case and if someone is wondering about the price... they have already dropped at least twice from the initial 510k...)