Financing commitment at the current time

  • Erstellt am 2022-06-11 10:10:00

Wirsechs

2022-06-11 10:10:00
  • #1
Hello everyone,
I am curious to know at which bank you have received approval in the last 4 weeks and where it is currently difficult.
The background is that we are currently facing the greatest difficulties. We have a net monthly income of €5500 plus child benefits for 4 children and already own property, which will probably be sold for €420k. I am currently not working at all, am a qualified nurse and could theoretically start several jobs tomorrow.
After the property sale, we will have equity of about €120k. We live quite minimally, have no car, go camping at most occasionally, and need €1500 monthly for living expenses for six people. The first rejection came from our main bank because they calculate horrendous flat rates for 6 people and “no car” is not even considered by them. Now we ended up at Deutsche Bank through a financial advisor, they are currently so nervous that they won't give approval without a purchase contract for the existing property – and this is a catch-22 situation because we can hardly sell our home before we can securely finance the new house... We submitted all necessary documents in record time except for this purchase contract. It is really frustrating. Is anyone else experiencing the same? Any tips? Both our realtor and the financial advisor believe that we would not have had this theater 8 weeks ago. The banks are probably trembling because of the ECB interest rate hike planned for July.
 

Caudaequina

2022-06-11 11:00:25
  • #2


Well, first of all it would be interesting to know how much and exactly what is to be financed. Because without a loan amount, it is also difficult to assess.

Furthermore, I rather don't believe that the banks are shaking. They are just summarizing the current situation. The income with 6 people and the liabilities of probably still €300,000?! Plus only one income.

These are just the facts. It is quite understandable that they are declining.
 

SoL

2022-06-11 11:01:24
  • #3
Yes, about a month ago we fixed our follow-up financing with DB for next November. Even then it was already difficult. The flat rates for 2 adults + 4 children were higher than what we need and although the house was appraised 8 years ago, a new appraisal had to be carried out.

Fortunately, this only delayed our application by 1 week, but they all seem to be quite nervous right now.
 

Wirsechs

2022-06-11 11:14:04
  • #4
No, this has nothing to do with our personal situation. My "unused" income is more of an advantage for the banks. It's not like I couldn't work; I just don't want to at the moment. And since I have a profession that is in high demand, the banks see it as security. Our financial advisor is desperate; all residential financing inquiries are currently on hold. Whereas three months ago I was met with mild smiles and documents could still be submitted, now nothing works at all.
 

Joedreck

2022-06-11 11:45:36
  • #5
Take a job that pays well and quit again after the financing is secured. If you are so sure, that shouldn’t be a problem, right? You can also sell your property and include a clause that the contract only becomes effective if the other confirmation from the bank is made within two months. In that case, you will cover any fees incurred.
 

Tassimat

2022-06-11 11:57:01
  • #6
I can understand the bank well. I wouldn’t give any money either. There is too much risk.

What if the house is worth less after all and there is less than 120k equity, what happens then?
I’m afraid a pre-sale is necessary! How do you want to service two loans simultaneously?
Then you have with


I agree. If you can find a job that easily, then do it.
Or is that perhaps a problem with four children? Is there even shift work involved?


No, not an advantage. Either you have income or you don’t. You clearly have no income. Zero euros.


A really, really bad idea. The loan could be revoked from you!


I believe the drama would have happened just the same.
 

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