Fix financing early – no room for negotiation with the home builder?

I only took care of the financing after all my equity was used up. At that time, the house was already completely finished on the outside and it was only about the interior finishing. This also has the advantage that you can estimate much more accurately how much you still need. And for that time, you don’t have any stress with the interest-free period and can act nicely relaxed. But of course, that only works if you build it yourself. If you have it built, then that just doesn’t work.

I only took care of the financing when all my own capital was used up. At that point, the house was already completely finished from the outside, and it was only about the interior fittings. This also has the advantage that you can estimate much more precisely how much you still need. And as long as you don’t have stress with the non-provision fee period, you can act quite relaxed. But of course, that only works if you build yourself. If you have it built, then that just doesn’t work.

And if you have so much money that you don’t care about the bank’s conditions. What would you have said after 1/3 of the way if the bank hadn’t offered you an affordable loan price...

That didn't matter to me because the undeveloped land is already worth more than the 100k loan I took out. With a half-finished house on it, I basically have 80% equity, so I was sure the financing wouldn't be a problem. Even at today's interest rates, that wouldn't be an issue.

In the end, the municipality also vetoes the building application and you have to completely redesign the house.

On what basis are you planning? Development plan or Paragraph 34?
If you have a development plan, approval should be a mere formality if the architect is any good.
Another question, of course, is when your general contractor would actually schedule you and how much equity you have; this also determines whether early financing makes sense.

Hello,

since the beginning of August, the SWAP has risen by 0.40% (so in 2 weeks).
The peak was in mid-June, and then it went down by 1.00% until the end of July.

That’s why this increase is quite normal; it doesn’t go steadily in the same direction (up/down), there are "recovery phases".
That means where it rose strongly, there were setbacks.
Now, for a few weeks, it was falling = setbacks upwards!

Although currently it should be very exciting, with the setback upwards, we are at the same level as it was at the beginning of May.
That means the next few days will decide whether 1) it continues to go up, and if so, the interest rate could be 0.50% higher again in a few weeks,
or 2) the rise of the last 2 weeks was the recovery from the 1% fall = then the interest rates should fall again in the next weeks, also in the range of 0.50%.

Now one could of course discuss for a long time what is more likely to happen ;)
(It could be that in the next months we move around 2% on SWAP, i.e. in the 1.80-2.20% range)

Make a financing now?
The advantage would be that if interest rates really continue to rise, you have secured a cheaper rate.
The disadvantage here would be: are all costs final? Probably not, because every change costs, which means it can end up costing more or less!
Of course, there are banks that can work with the first cost estimate and house plans = it is possible to arrange financing.

Of course, you can even change the builder later. What’s important is that the house is executed as planned (equipment, size, materials used). Whether company A or B does it doesn’t matter in the end.

Advantage of waiting?
You can plan precisely to the end, know exactly what it will cost (you probably won’t have to finance extra!).
Disadvantage: possibly higher interest rates.

How well can the risk of cost increases be cushioned? Is there still ample financial buffer and equity in reserve, or are we already close to 100% financing at the upper limit of monthly income? The tighter the financing, the more important reliable prices become.

We do not yet have

[*]Construction contract, description of construction services

Excel spreadsheet or rather, actually you only have a non-binding promise from some construction company. There can be a big gap between what someone says and what later appears on paper. Push for these documents, then you can see further.