Feedback on financing requested (purchase price 222,000)

  • Erstellt am 2014-11-21 16:09:48

Aliona

2014-11-24 14:33:08
  • #1
I do appreciate factual comments, but hints or questions about completely different topics (like location, building condition, or the breakdown of the total price) than the original question do not belong here. Just because the mods do not want to hear them or miss an answer and also make fun of me, I don’t have to respond to that – and I don’t find that particularly great! But I have already written this several times.

My simple concern was how I am financially positioned, and I hoped for feedback on this, like from you or others at the beginning of the thread! Now it’s more about being a fanboy of the moderators, who ask off-topic questions but still bring a lot of experience (which doesn’t help with a question in a different area).

It is clear and defined that only A’s income is used for the loan. I find your (Bauherren2014) comment and concerns to be valid, yet one should not simply ignore B’s income. It is known that the bank does it this way for the loan, and it was already described on page 1. I already wrote in the original post that the bank agrees to this and it has already been discussed with offers available – why toxismolotow (with his alleged (I cannot assess) many years of experience in the banking sector) questions this again is not understandable to me.

Only this much on the subject: I have just received a binding offer from the selected bank and have an appointment to sign on the coming Monday. The checks have been positive (with the location of the property, foreign nationality, and one income). The terms: €137,000 at 1.4% fixed for 4 years and €50,000 KFW at 1.25% fixed for 10 years. After 4 years, I have the possibility to fully refinance and take out financing well below 1.5%, regardless of interest developments (we don’t need to go into this interest rate, it can be accepted as given). Unfortunately, this option is not possible yet due to missing requirements. The KfW portion can be repaid at that time without penalty interest and refinanced.

I am very satisfied with this offer and a monthly rate of €800 (I don’t know about the repayment just now) and the option of 4-8% special repayment per year. This also secures me a higher margin per month at the beginning, if corresponding additional costs arise.

Regarding B’s job and risk of loss: B holds a degree, speaks two foreign languages fluently, and meanwhile speaks acceptable German. In addition, there is a job secured until September 2015 with an option for permanent employment. Even if this is lost, something new can surely be found for this profile that brings in at least a thousand euros per month – even with, say, a 3-month search break in between. Exactly these concerns about job security can basically be applied to almost any non-self-employed person if you go by that standard. Here, however, I have a good feeling that we as a family can plan with this income – apart from family planning (1 child).

Relevant costs for vacation and leisure/fun must be deducted from B’s income, so this income can already be considered in the medium term – which we do.

Reserves for a new build and nearly new cars – honestly, I am not yet beginning to think about this, but in 3-5 years this could certainly become an aspect.

What was and is important to me is that A alone can handle the costs and responsibility; this seems possible based on the calculation above and the bank’s evaluation, especially since the loan amount is now €300 cheaper than expected and correspondingly more margin per month is available (roughly €600 per month).

In this thread, I would have liked feedback on the keywords "healthy financing," "risky," or other financial factors I may have overlooked. If more value is placed on location, building description, or off-topic and bashing, that’s okay.
 

milkie

2014-11-24 14:37:21
  • #2
They (she) just want to help you here and point out any potentially important, decisive points.
 

Bauherren2014

2014-11-24 15:08:57
  • #3


You’ve already written that several times. Nevertheless, I never had the feeling that anyone was making fun of you in any post. If you mean the only off-topic post by Yvonne: I openly admit that I also have to smile a little when users in an anonymous forum talk about themselves in the third person – but that has nothing to do with making fun of someone.



But there have already been many answers to that. To summarize once again: Numerically, it is certainly possible, even without person "B"'s income; whether it is possible for you personally, only you can know (with the hints from those who have written here).



Yes, you wrote that the bank is on board, whatever that may mean. It could also mean that the bank initially basically gives a green light for the purchase price amount. To me (and probably to some others), however, that did not sound like there were already concrete offers from the bank. Therefore, toxic’s objection was certainly justified.



Whether person B has a job where they can almost seamlessly switch to another job, we cannot know now either. If that is the case, that’s good for you, and you can factor that in.



Nevertheless, you should definitely take this point into consideration. Because it is quite possible that person B’s income could disappear entirely or at least partly while costs increase significantly.



If you want to reduce feedback to just this – I’d put it this way: Considering person B’s fixed-term employment contract and family planning, I would say it’s okay and doable with the expenses you mentioned. Certainly, there are more relaxed financings but also much riskier ones.
 

noroot

2014-11-26 06:48:44
  • #4
And what everyone here seems to be getting at in my understanding and why they are asking the "offtopic" questions: For the amount and the situation briefly summarized "tense but doable." Without further information (which was attempted to be narrowed down here through the "offtopic" questions) the purchase price could also - for various reasons - be set many many € too low. And then it simply doesn't work with additional costs in that setup anymore. And especially the perceived experience of the frequent posters in this forum is very familiar with these possibly hidden costs. And they try to help "Person A." That it seems to not matter to you - your business.

And why I am even commenting here now? I am asking myself that as well.
 

Similar topics
30.05.2012Massive house costs KFW 70 - Prefabricated house65
19.11.2014Financing single-family house - How much can we afford?47
25.12.2014Do we have enough money to finance the house?45
03.05.2015Financing with KFW, expert's signature14
13.08.2015Building a house - from financing to planning12
12.10.2015Youth financing feasible or too early?12
10.07.2018House financing through SAB49
20.06.2016Error in financing?280
20.06.2016Experiences with income from self-employed individuals in financing?12
26.07.2016Calculation of equity capital in connection with KfW loan28
01.05.2021KfW loan + repayment grant for granny flat39
31.03.2018KfW financing - roughly estimated the following scenario10
22.04.2019Real estate loan with high collateral but low ongoing income35
21.10.2019Financing with building savings loan + KfW + subordinated loan17
16.04.2020Is the KfW loan still salvageable / changeable?10
01.07.2020Financing via KFW 55 or still from the bank?18
02.03.2021Financing a single-family house with 170 sqm30
17.04.2021New KfW Building Loan Conditions17
06.07.2021KfW loan is expected to become cheaper from 01.07.58
29.01.2023KFW Credit 261: New Construction Efficiency House 40 NH17

Oben