Equity - Reserve for Unexpected

House connection costs, various fees, etc.

Even with the demonstrably expected additional foundation costs, the bank initially wanted to refuse.

But then I wouldn't have chosen this bank at all if they had caused me this trouble before the contract was signed?! Or did they (Your acquaintance) not even factor these costs in and only later, that is retrospectively, try to include them???

No, the acquaintances then signed the contract with another bank. I just wanted to point out that it's better to be on the safe side beforehand and ask what can actually be financed.

Hello,

Do I understand correctly that I cannot include these costs in the financing, but that I have to pay them directly from equity during the construction phase? That would be quite harsh, right? How do others manage 100% financing with less than 30k equity?

Even if ypg probably doesn’t like to hear it - it depends on the financing bank.

"Common" human sense assumes that a bank includes all incurred costs - excluding furnishings - in the loan. This is by no means the case; I know banks that finance everything - even pseudo additional costs - which are later used for a new kitchen (the bank is actually aware of this charade). But I also know of financings where, for example, the costs of outdoor facilities are not covered because the access path to the house is not counted as part of the pure house costs. Best ask your financer - also, while you’re at it, how the equity must be used according to the bank.

Rhenish regards

Hello,


Even if ypg probably doesn’t like to read it - it depends on the financing bank.

Mistake! I like reading things that are different from what I know. That way, I expand my horizons just like you!

Sometimes I am also a bit naive - and I’m happy to be proven wrong... fortunately, I haven’t ended up at such a bank, but probably at other abnormalities (of which I probably haven’t noticed anything )

Oh, that reassures me, that it can basically be financed. Then we'll clarify that with our advisor beforehand. Thank you!