Do we have enough money to finance the house?

The bank will only consider your income. That the wife will eventually go back to work does not count; only permanent jobs that have already existed for at least 2 years – preferably longer – count. So your 2400 and the child benefit count. There are 3 persons on the other side. Whether that is enough will be judged by you and the bank according to different criteria. You make a household budget with all expenses. The bank does not do that; they calculate with flat rates, regardless of whether you consume more or less. Or have you ever had to submit an expense report for a loan? Exactly.

I can report that with an income of exactly that amount, a loan of 210k euros was no problem for us with only 2 persons – without equity. We could have gotten considerably more. But I can also say that more than the 750 euro rate would not have been acceptable for me. That would have been simply too tight. And there are only two of us. With a significantly lower loan amount. So I would think carefully about that and rather buy a cheaper option. Or wait until the wife has been in permanent employment for a few years, but if a second child is supposed to come, that will probably not be the case for at least 5 years. And possibly it will then only be part-time, but one more person, so that in terms of income it will not get any better either.

We went to an independent financial advisor, he said that up to €375,000 including equity would be feasible without it being too tight.

Sorry, but I don’t quite understand right now. You say that parental allowance is not included, but the financial advisor thinks you could take out a loan of €325,000 with your income of €2,584 (without parental allowance)? No one can count on money that will be available at the earliest in 1.5 years.

And another question:

Income:
I at least €2,400 net (depending on shift allowances, but €2,400 is the minimum)
Wife currently €761 net (she will start working again in April 2016), then our income is:

Me: approx. €2,137
Wife approx.: €1,900 + €184 (child benefit) = €2,084

Why is your salary lower in 1.5 years than it is now? Or did you make a mistake there?

The child obviously costs something, but that comes out of the wife’s income, which wasn’t considered by the advisor.

I don’t understand that either. You are a household. That means the bank calculates all expenses for the three of you together and not just yours, even if you are financing alone.

Maybe you can shed some light on this.

Maybe he mistakenly thinks that his income will be lower because he is changing the tax class from 3 to 4?
The idea that the money for the child should be deducted from the woman is nonsense. Elterngeld is not taken into account by the bank, the financial advisor cannot simply deduct the costs for the child. The bank deducts these anyway from his salary, which is plausible since there is an obligation to pay child support. So one should change the financial advisor or directly request an offer from a bank. Then you will see that flat rates for 3 people are deducted from these 2400 euros and maybe a 200k loan or less is possible.

: Our answers overlapped a bit earlier.

The bank doesn’t do that, they calculate with flat rates, no matter whether you consume more or less. Or have you ever had to submit an expense report for a loan? Exactly.

About 1.5 years ago, when it came to our financing, we actually had to show our expense report to a bank. And they were really surprised that our expenses (hard to believe) were higher than the always assumed flat rates. But that was really an exception, because otherwise no one ever asked for it.

I haven't heard that before, but the actually existing expenses are definitely checked again based on the bank statements and partly also queried. For example, children who are obligated to receive support and do not live in the household must be specified separately, as well as other ongoing obligations, because not all of them appear in the Schufa. These include, for example, installment payment agreements (dentist, mail order company, BAföG, some government loans, fines, penalties, etc.). They do not necessarily appear on the bank statements, for example, if you do not pay them – which is said to happen.

For a new build, you have to add another 40,000 euros for incidental costs. There is a thread here where individual people have listed their incidental costs.

That is not quite correct: The builder has to pay additional building costs, which can sometimes amount to 40,000 if you have bad luck with the land.

This seems to be a developer build - here it must be checked (especially if it is still being planned) who is registered as the builder. Developers usually protect themselves if you can make your own requests: therefore, it is important to pay attention to when the notary appointment is signed. The builder is the one who owns the land!

Hello 305er,

whether your salary will be sufficient for this project, I cannot say.

Nevertheless, it is probably wrong to assume that you will not need to buy anything in the future.
and have described it well: here a little of this and there a little of that adds up, times and needs change.
Children become more expensive, and some items do not appear for you. At least you should assign each person a monthly allowance, whether gifts, medicine, or sports club fees are then paid from it is irrelevant - what matters is a budget with which a person with a certain standard of living can pay for small things.

Then you should consider yourselves as a unit: the woman with the child benefit, the man with the electricity bill -> that doesn’t work, even if your accounts are split like that... somehow the calculation is distorted, of course, if expenses are offset against unreported income.
Calculate total expenses and income; a household budget book is really very helpful!

Basically, you cannot simply increase the loan installment. What used to be common in the 70s, to finance your new car right away, is no longer accepted today. Today the bank checks the calculation, where furniture (including kitchen furniture) is not to be financed and must be paid from withheld equity, i.e. equity that was not included in the financing.

Regards Yvonne