Financial planning and cost estimates

Hello everyone,

we are currently setting up our financing and are a bit puzzled about how to proceed exactly. The fact is that we want to finance through a financial broker at the DSL Bank, since their interest rates are simply unbeatable at the moment and the brokers offer slightly better conditions.

What is causing us headaches now is that cost estimates are required for everything in order to determine the exact financing need. One might think this is not so difficult after all. The house construction costs are fixed (offer) and the land costs (notary contract) as well.
The current status is that the survey of the plot is currently underway and it is also not yet exactly determined where the house will be located. Therefore, many other positions are not yet fixed either. The connection costs partly depend on meters, but since we do not yet know the exact position of the house on the plot, it is difficult to create an exact cost estimate. The same applies to outdoor facilities. I don’t yet know how wide my path around the house will be and how large my terrace will be. What do you think?

One more, more general question? The financing structure consists of equity capital, bank capital, and KFW funding with €50,000 each (total €100,000). When and for what will which funds be released and can be used?

Do you really need a quote for everything?
We only had to make a list with the approximate amounts and attach the general contractor's offer.
Outdoor facilities were recognized up to 15,000€ without proof. Everything else would also have had to be supported with quotes.
However, we are not with the DSL Bank.

Regarding the 2nd question:
In general, banks want the equity to be spent first.
KFW is usually the most affordable component. I would actually try to draw it as early as possible in the order. However, you have to be careful with the commitment interest. We had to optimize a bit and drew the KfW portion in between, shortly before the commitment started there.

KFW is usually the loan component with the lowest interest rate. I would actually recommend drawing it as early as possible in the sequence. However, you have to be a bit careful with the commitment interest. We had to optimize a bit and drew the KFW portion in between, shortly before the commitment period started.

That is correct and logically explained.

However, a KfW loan is usually secured subordinated to the bank loan. Therefore, KfW usually insists that the bank loan must be fully disbursed before the KfW loan can be touched.

But there are exceptions here as well (see the example from ). Much is negotiable...

Hi, we are currently also in the application process with DSLBank, we have provided approximate values that we are working with. Overall, it just has to add up to the amount you want to borrow. However, the position of our house is also fixed. So we have only sent a draft purchase contract for the plot and a draft house contract at fixed prices.

Unfortunately, that's a problem with DSL, that you can no longer apply for more and then give some back.

I can also recommend not planning the notary appointment too early; we have probably been waiting for approval for over 3 weeks now and there are always small additional document requests.

However, a KfW loan is usually secured in a rank behind the bank loan. Therefore, KfW mostly insists that the bank loan be fully repaid first before the KfW loan can be touched.

There was no problem or inquiries/negotiations etc. for us.

Depending on what kind of KfW loan it is, you may only be allowed to draw it for a specific purpose, e.g. if you have a KfW loan for energy-efficient construction, you cannot use it to buy the land.

We paid for the land from own funds. Therefore, I cannot say whether this would have been possible for us.

Remember that everything takes a bit longer with the DSL. Otherwise, they wanted a signed statement from us of the expected construction costs from the architect. We did not have to submit any concrete offers.