Current processing time for construction financing applications at banks

  • Erstellt am 2020-12-23 20:11:13

Hausbau2022

2020-12-27 18:06:48
  • #1


is your opinion, I have a different one and see it in practice. Both with me and with 2 investments in November as well as with some friends who have bought. As long as the valuation fits, they finance it. The guidelines they had before are still current. And if someone has too little income, too many consumer loans, or the appraisal doesn’t fit, there is simply no money. Corona or not. And what you write I also hear from people. There are some who wanted to buy in 2014 and are still waiting for the crash. Them being able to wait does not mean you can get it cheaply. In a crisis there are always winners and losers, and plenty of people outside with money ready to get something good...
 

BackSteinGotik

2020-12-27 19:25:45
  • #2


That is completely okay and you probably have to do that. The Bank Lending Survey so far speaks of a different development (= more restrictive), and your case fits perfectly into my explanation – if you already have real estate for > 1.8 million euros, you are in the upper K segment for the banks. And if you have a property with a good valuation available, the same applies. I wrote nothing else. Only that such cases will logically become increasingly rare with rising construction and land costs.

A single-family house/semi-detached house for own use in a price explosion quickly becomes a niche market. With objectively poor valuation and the necessary installments far above the comparatively achievable rent of the property, it will become difficult at some point. Because salaries do not grow at 5-10% p.a., and normal people only have a limited working life – a simple house is not a multi-generation project. And because banks do not distribute unlimited money, more and more households drop out of the potential buyer circle every year. At the same time, renting instead of buying suddenly becomes attractive again, because the waste a.k.a. price bubble simply becomes way too huge.
 

WilderSueden

2020-12-28 14:55:39
  • #3
Just wait and see if renting really becomes more attractive. All the apartments that have recently been sold for 40 years' rent have to pay the money back. I find it rather unrealistic that a family would spend half a million on a 3-room apartment in a residential block. That ends up with "investors," big or small. And that doesn't even take into account what a new-build apartment costs here. I expect to see several rent increases in the coming years. German tenancy law doesn't make it easy for landlords, but those under some pressure find ways.
 

Wolkensieben

2020-12-30 20:27:41
  • #4

Is there a difference between a financing commitment and a financing confirmation? A former neighbor also said that he presented the financing confirmation from the bank during the viewing and immediately reserved the house. He started renovating one month after the viewing.
 

nordanney

2020-12-30 20:47:36
  • #5
The difference is a loan agreement (the bank has checked creditworthiness along with the property through inspection and valuation and has made a credit decision. ALL creditworthiness and property documents were available to the bank for this) versus wishy-washy (non-binding letter that the bank can imagine financing – subject to complete property and creditworthiness review). A financing commitment incurs costs for the bank. For example, equity coverage must be provided.
 

Wolkensieben

2020-12-30 20:58:37
  • #6

OK. According to his story, he had one that was valid for a while for an agreed amount. I have heard about the "financing confirmation" and viewing properties several times already, as Wilder Süden wrote. That you can't even view without it.

I only know that for my first apartment I had to provide a bank guarantee for the deposit and commission.
 

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