Financing Single-family house 520TE current market situation / year-end business banks?

Hello everyone, I hope it is okay that I am creating a new topic for financing questions! see: https://www.hausbau-forum.de/threads/kaufmoeglichkeit-efh-80ziger-jahre-risiko.44351/

Here again briefly the key data: Purchase 520TE Additional costs approx. 35TE Modernization 100TE Equity (depending on how much of the modernization we include in the loan) max. 160TE

Since we want to get the whole process over with as quickly as possible (this year), I also hope for a few suggestions/ideas on how we can set up the financing in the best/most inexpensive way. Unfortunately, there are many stumbling blocks causing us problems. The starting point is, we have a notary appointment in just under 3 weeks and the financing is not settled (banks currently want more documents and my wife has had no income for 2 months because the parental allowance has now ended, but she will start working again in March – this is confirmed in writing) There is an offer (30 years, 1.2% repayment, 3.5%, installment approx. 1900 euros) which is good, but the advisor already said he doesn’t know if it will go through like that (we don’t have time if we then continue with the next bank). Currently, we are with 2 independent advisors and I have an appointment next week at the house bank (Commerzbank).

Does anyone possibly have a tip which bank currently has "special conditions" or something similar?

Accept the offer, continue searching in parallel. If you get a better offer within the next two weeks, use the 14-day cancellation right. I think that's the only feasible option in your situation... What I think about 1.2% repayment, I'd better keep to myself...

Accept the offer, continue searching in parallel. If you get a better offer within the next two weeks, exercise the 14-day withdrawal right. I think that’s the only feasible thing in your situation... What I think about 1.2% repayment rate, I better keep to myself...

That way we don’t shoot ourselves in the foot (Schufa etc), so the banks don’t react negatively? We want to choose the repayment rate like that at first, when my wife works 30 hours, then increase it. With the current interest rates, it’s tough. I would also like to repay more directly... but that’s just how it is.

30 years fixed interest rate at 3.5% seems surprisingly cheap to me. Is that a standard annuity loan? I also don't think much of 1.2% repayment, but if it can't be done differently at the moment and you are sure it still works? That's up to you. Did the advisor say anything about why he is not sure it will go through? I also find the conditions difficult, especially if there is currently no income from your wife (as far as I know, parental allowance doesn't count anyway?). Be sure to get the re-entry in writing from the employer, including the number of hours. We did that the first time we bought a house as well, that helped.

My gut feeling roughly says you need a bank that adapts to your individual circumstances and that probably doesn’t necessarily match with “where did others in the forum get the lowest interest rate/special conditions right now.” Our financing was less problematic (not completely, but mostly), but even when we just looked at a list of offers with our finance person, he was already able to say something about many banks and bring experience, and in the end he also obtained offers from a few local banks outside the list (which ultimately were unusable, but that can vary locally). So basically: a dedicated finance person with a bit of experience should hopefully have already dealt with a more individual case that might not pass the standard procedure at every bank – at least that’s what I assume... (I can’t fully judge whether that is even a problem, maybe you alone earn so much that financing would be unproblematic just with your income).

So I think your current approach isn’t so bad at all. Parallel to the discussions, I would still try to gather all documents as best as possible. They differ a bit, but ultimately they are quite similar from bank to bank (pay slips, possibly income tax assessments from one or several years, possibly account and securities account statements to prove own capital, if you have anything to prove your wife’s future income also that + all documents related to the house – it’s quite possible that you also need to request something additional from the seller + possibly documents about renovation/modernization). I have zero experience what documents are required for house purchase + renovation, but you probably already have a list of what they wanted for the first offer, which I think is already a pretty good starting point.

The interest rate for 30 years also seems cheap to me at the moment.

Until when is the offer valid? Or is it an old offer from way back then?