Financing approval not without KFW??

hello,

I have the following question. we have received a reasonable financing offer. however, for the actual approval, the bank requires proof of the KFW value of the planned house. a call to our builder revealed that he can/will only issue this once we sign a preliminary contract. the builder said that normally it can be submitted later, but if we need it beforehand, we would have to sign the house construction contract. he would also include a clause allowing us to withdraw from the contract free of charge in case of a negative financing application. the bank advisor has basically given us the green light for our financing, but before we have a binding approval, it still makes us uneasy to sign such a preliminary house construction contract. how should we proceed??

thank you for your help

Hello Rat,

for the KfW loan in the Energy Efficient Building program No. 153, the application must always be processed through the house bank, and a form from an expert (energy consultant, etc.) must be completed.

As you can read from this, considerable decisions and calculations are necessary here and must also be entered in the form.

This means in your case that the energy consultant/expert of the general contractor must calculate these values, which of course are not random but should already include the final KfW standard. Changes within the framework of the guidelines are naturally necessary. I hope your bank has informed you about this; otherwise, please ask me again.

Thus, you should appoint and commission the general contractor so that this form can be completed.

Regards Norbert Koch Expert of the KfW Bank

Hello,

....how should we proceed??

That depends crucially on the wording of the "free" right of withdrawal


Kind regards

hello,

we received the application in the above-mentioned link from the bank as it is.
our problem is that it must be completed for the final financing confirmation.
and not only for the KfW amount but also for the financing portion of the bank. thus, the bank cannot yet give us a binding commitment regarding our entire financing request.

we are surprised that the KfW part cannot be submitted later??

I can only sign contracts for land purchase and house construction after a complete financing commitment, and not before I know that the financing is secured??

best regards

That crucially depends on the wording of the "free" right of withdrawal

hi, today they sent me a draft of the contract by email. I’ll copy the relevant wording:


"The client may withdraw from this contract at any time without notice or formality by written declaration if public funding is not granted and in the event that a commitment from the bank responsible for financing the construction project is not issued. However, a rejection by the public funding agencies as well as by the bank responsible for financing must be presented in the original. In the event of a financing failure, the client must also prove that no other bank was willing to provide a financing commitment and that all efforts have been made to obtain a financing commitment. The right of withdrawal does not affect the right to demand reimbursement of costs for architectural and structural engineering services already rendered by the client."

Hi,

Quote:

"In case of financing failure, the builder must also prove that no other bank is willing "

Caution!!!!!!

how is that supposed to work????...prove that no bank........

Do you want to check with every bank in the world?

Passage TO BE REMOVED WITHOUT REPLACEMENT

I believe there is a fee schedule for filling out and preparing these KFW documents.

They -- AND ONLY THEY -- should charge you for that, then you save yourself this preliminary contract and are not yet stuck....

If it goes as desired, the construction company should charge you this amount. If it doesn't work out, you don't have the hassle of getting out of the contract.

That the construction company does not do this for free is legitimate, as this is a certain effort, but what annoys me immensely is that people are always tried to be pushed into signing through this approach.

Based on such processes, you can also see how customer-oriented your house builder is. (This is certainly not the normal way), if he gets picky, "wave goodbye" to the competition.

It does not always have to go in favor of the sellers, make that clear to him as well.

Regards
Ranseier


Regards