Financing Home Purchase Assessment

It's in the opening post… plus please read the words ;)

Sorry, I just can't find it?

Sorry, I just can't find it?

Yes, sometimes you can't see the forest for the trees.

The relatively good income situation has only been like this for 1.5 years, so unfortunately no higher equity has been generated.

Sorry, I just can't find it?

The relatively good income situation has only existed for 1.5 years, therefore unfortunately no higher equity has been accumulated.

And the necessary 30 characters and words ;)

Close call. I would make it dependent on the renovation condition (roof, insulation, heat pump possible) and other offers. Personally, I would feel more comfortable with a smaller property (living space and plot). Or save equity for another 1.5-2 years and keep looking.

Thank you very much for your answers and hints.

I am not looking for a bigger house at all; 150 sqm of living space and a small garden would be absolutely fine for us. Unfortunately, there are no properties that match this scenario and are priced between 400-500k. Otherwise, that would be my first choice to set up a "secure" financing. The houses offered between 400-500k are in severe (!) need of renovation, and I simply do not feel up to that.

I will read up more closely on the topic of oil heating in BW, thanks for pointing it out... As for the other (renovation) topics, I must admit that I have hardly any knowledge and will therefore soon visit the property with an expert. Hopefully, it will then become clear what will be coming in the next few years. One note: The freshly determined energy efficiency class is "B". Does this allow any conclusions about the heating or renovation needs?

Regarding financing: If I have to borrow 660,000 EUR and the property is only worth 590,000 EUR, then this is about a 110% financing. What will the average interest rate be here roughly? Do many banks do this, or is it rather "a handful" (credit score is good)?

Best regards

Class B is great for an old building. That means it has already been energetically renovated. It says nothing about the electrical system, water pipes, etc.

However, the question remains why a renovated house is cheaper than the others. I would look into that again critically. I have also looked at plenty of houses in dire need of renovation for €400,000 at around 130 sqm (region western Lake Constance hinterland).

Regarding financing:
the bank does not count the purchase price in full but usually with a deduction. This results in the loan-to-value ratio. Roughly, you can determine the interest rate via various loan comparison portals, adding one or two tenths so you are not surprised. I would also recommend that you contact a financing broker now to roughly clarify which interest rates you actually have to expect.