Financing decision experiences

Hello everyone,

my wife and I are currently under some pressure regarding our financing...

Starting point: this week we had several financing appointments (once with an independent financial advisor, with whom we are currently also in contact + 3 other banks). Among other things, we spoke with our "house bank" - ING - on Wednesday. From Tuesday (19.04) new conditions apply there, the interest rates should increase by about 0.3%. If we decide quickly and accept the financing proposal and send all documents by 18.04, we would still get the "old" conditions (annuity loan with about 2.28% nominal interest rate with 125k equity). Additionally, it is possible that after internal review another -0.1% discount will be added. The assumption here was a purchase price of 600k.
We have not yet received a concrete offer from the other banks, I will receive an offer next week from Volksbank/Schwäbisch Hall (probably a combo financing with a home savings contract) and maybe from Deutsche Bank.
Ultimately, on Thursday we made a purchase offer (the broker wanted a decision before Easter, but we only had the second viewing with family on Wednesday, so we couldn't make an offer earlier) of 590k. This offer has now apparently been accepted (the broker called me today). That leads to my first question: the data in the financing proposal was based on a purchase price of 600k. If I print out the document, change the data with a pen (purchase price -10k, ancillary costs would have to be adjusted, the rest I would possibly leave as is...), sign and send it back: is that legally valid or can I assume that in this way I can still secure the old interest conditions?
Furthermore, I don't have good photos of the property (interior) in the documents, as the tenants did not want photos. And: actually, we do not have the entire equity on our accounts, the ING mortgage financier also knows that we would receive part of it through a parental gift. That could pose a problem regarding proof of equity required. How is this usually done in such a case, bank statement of the parents with a copy of their ID + something like a consent declaration?

In parallel, we had the idea to use the parental house as additional security/capital acquisition. The parental house is still burdened with a loan (about 2 years remaining). So it would be a subordinated financing. ING told me by phone that they would not want to do that - however, at that time I did not know that the parents' loan is also with ING... At the current time, it is not entirely clear to me how great the interest reduction effect with the capital acquisition can be - but since this scenario is not quickly realizable, interest rates will increase in the meantime anyway - at least with ING that is certain, with the others I do not know. In any case, documents about the parental house would be needed, which we currently do not have (land register extract, possibly energy certificate... or would ING not need all that because they already know the property?)

At the moment, as you can see, I have a lot on my mind and am not quite sure whether I should try to "quickly accept" the ING financing proposal as described above, or simply wait and maybe bring up the scenario with the parental house as additional security...

I would be very happy if someone wants to share their thoughts. Many thanks in advance!

I would never want to encumber or use real estate of family members as collateral to secure my own financing. If something goes wrong, they are involved, and in the end, their house will be auctioned off if things go really wrong.

On the topic of changing data: Just do it and initial every page. At least that has always worked for us so far...

I would never want to encumber real estate of family members or use it as security to secure my own financing. If something goes wrong, they are involved too and in the end their house will also be foreclosed if it goes really badly.

That's true, of course, we would prefer not to as well, on the other hand, every 0.1% reduction amounts to about €5,000 over 10 years, which is why we still consider it...

Of course, we would also take out appropriate insurance – I already have a "mixed product" from my employer (insurance company) in the area of occupational disability/term life insurance, we would have to supplement that somehow, I consider the costs for such insurance quite manageable. And with the loan amount and long term, in my opinion it makes sense anyway.

5,000 € over 10 years

you would bet the family’s house and home on that? That really isn’t much. 500 euros a year when you buy a house for about 600,000. It’s like filling up your tank nowadays: with the 40,000 euro car waiting half an hour at the gas station because the fuel is just a bit cheaper there. If I were your family, I definitely wouldn’t go along with that.

That's true, of course we would prefer it as well, on the other hand, every 0.1% reduction amounts to about €5,000 over 10 years, which is why we are still considering it...

Of course, we would also take out corresponding insurance - I already have a "hybrid product" from the employer (insurance company) in the area of occupational disability/term life insurance, we would have to somehow supplement that, I consider the cost for such insurance to be quite manageable. And regarding the loan amount and long term, in my opinion, it definitely makes sense.

However, the insurances do not prevent the forced auction of your parents' house! My main bank also wanted to persuade me to mortgage my mother's condo. So I rather went to another bank. They also had significantly better conditions and did not try to push me into such a construct.