Current processing time for construction financing applications at banks

How are those supposed to manage, who for example buy inventory and need a quick commitment for the broker/seller.

Normally, you already get a financing confirmation from the bank beforehand for an amount X that you are willing to pay and that the bank considers feasible after a rough check. You then give this to the broker/seller and they can firmly reserve the house. After that, the actual financing is clarified in detail and the notary is scheduled. Depending on the housing market, it may be that you don't even need to attend the viewing without a financing confirmation. We once looked at an apartment where there were 4 other commitments in one afternoon. Without a financing confirmation, you are out.

Normally, you get a financing confirmation from the bank beforehand for an amount X that you are willing to pay and that the bank considers feasible after a rough check. You then give this to the realtor/seller, and they can firmly reserve the house. After that, the actual financing is clarified in detail and the notary is appointed. Depending on the housing market, it may be that you don’t even need to attend the viewing without a financing confirmation. We once looked at an apartment and there were 4 other commitments on the same afternoon. Without a financing confirmation, you’re out of the running.

That’s not worth the paper! No bank does that either! It’s just a non-binding consultation.

Of course, there is no guarantee that you will get the loan and it also says so. But it is better than standing there with nothing while the competition comes with a "probably." Because then you can't make a reservation. The purchase is only final with the proper financing confirmation.

It is much more annoying that there are delays in submitting the building application due to travel restrictions.

Can you please explain the context to me, as I do not understand your comment?

It is somewhat complicated due to the distance from the current (Noch) residence to the construction site. Before the BA is submitted, there are still quite a few things to clarify on site. In SH, there is currently a ban on overnight stays everywhere, and not everything can be resolved just by email and phone. Hence the unnecessary delays. Regards Olli

In the meantime, we received a letter from the bank just in time for Christmas. Unfortunately, there was no Christmas present inside, but a rejection. I immediately called the financial advisor, who said it was an automatic rejection (?) because the bank was missing some documents for the Schufa, and they quickly stamped it as a rejection without waiting for the supporting documents. According to him, the processing has now been reopened after the missing documents were sent. That is his understanding of the situation. It all seems a bit strange to me. Additionally, my Schufa score is still at 99% despite these two issues.

To make the situation clearer for you: it concerns two questionable entries in the Schufa: once an overdraft limit which has now been deleted and a revolving credit, which has also already been paid off. Both are apparently still listed in the Schufa, but in the self-disclosure, I indicated that these two issues have already been resolved, without providing corresponding proof.

On 22.12., we received a call from our financial advisor requesting that the missing proof be submitted. I then did so at the end of the day on the same day, but now the letter with the rejection has arrived, dated 22.12.

At the moment I am really confused. Does this mean that the entire financing is at risk or is it actually possible that the bank immediately issues a rejection because of the missing proof and then reopens the file after these have been submitted?

The disadvantage is that we only get all information through the advisor, but I will try to call there on Monday anyway to ask about the status. However, I am no longer that optimistic despite the financial advisor’s statement that everything went positive in the preliminary review.