Have financing offers reviewed

Hello everyone,

we are just starting the initial planning phase regarding a desire for a home of our own.
I’ll be upfront and honest right away, neither of us has enough basic knowledge to distinguish the many pitfalls of financing offers.
We have no problem keeping household budgets including income/expenses and know our financial situation very well and have been able to assess it for years.
The many numbers and conditions in the financing offers, however, are simply too much for us despite having read many tips. It would be reckless to blindly accept an offer that appears to be the cheapest to us. We simply don’t know enough.

Now our question: where can one submit multiple received financing offers independently and have them reviewed to find out which is the best?
We are definitely willing to spend money on this, better than losing several thousand euros due to negligence.
Therefore the second question: how much does such a review approximately cost?
Has anyone of you ever done this?
Would you advise us to do so in our situation as well, or what are your opinions on this?

Thank you very much for the answers!

It depends a bit on what you have planned. For normal financing, I think that's a bit excessive. I believe you should go to a broker like Dr. Klein or Interhyp and have them make you offers. If you are still unsure afterward, you can definitely post them here anonymously. There are many finance-savvy people here. Where you should really get help, though, are the house construction contracts.

The many numbers and conditions in the financing offers, on the other hand, are simply too much for us t

Actually, I recommend that everyone understands the financial product they are signing for themselves. Many numbers do not sound like a classic annuity loan story with 2-3 components (including KFW); rather like building savings contract constructions.

But even these should be understandable on your own.

How many offers have you obtained? Only from one "provider"? Or several?

A simple annuity loan should be understood by everyone. Therefore, I do not find it necessary either. KfW is not that complex either.

Combination products with [Bausparvertrag] etc. are not necessary.

Good morning,

we have offers from various banks. (all annuity loans)
In principle, it is quite simple to understand, as the monthly rate is clearly visible.
The difficulty for us is dealing with the different loan terms, the corresponding effective annual interest rates, and the assessment of the remaining debt, for example:

1. Nominal interest rate 10 years, effective annual interest rate of 1.36%, repayment of 2.50%
2. Nominal interest rate 15 years, effective annual interest rate 1.81%, repayment of 2.25%

We also have a third offer for 20 years, part of which is then supported by KfW funding.
(With a total loan term between 32 and 35 years, a high remaining debt remains with all 3 offers)
We are also uncertain about the commitment fees of 0.15%-0.25% per month, whether the monthly rate increases significantly when these become due (for what amount and how long are they due?)
We have read that you should not just be blinded by the interest rates, but rather pay attention to the total costs of a loan.

Therefore, it is simply difficult for us to say what is best for us.
Many thanks in advance for taking care of this issue.

Regards, Nescool

Therefore, it is simply difficult for us to say what is best for us.
Many thanks in advance for taking up the topic.

Regards, Nescool

You always receive a detailed financing plan with the offer.
As a first reference point, you can always take the nominal interest rate.

After that, it’s best to read and understand everything thoroughly... this is very important, you have to understand it yourself, otherwise it will certainly go wrong.

A few things that have currently caught our attention are also affecting our financing:

Some providers also include land registry and court costs in the effective interest rate... so be careful when comparing the effective interest rate and avoid comparing apples and oranges here.
Ongoing costs are always annoying, such as account management or annual statements, which can usually be negotiated away.

You also have to be careful with the remaining balance. For example, we had an offer that included 1 repayment-free year. It was therefore not surprising that a higher residual debt remained after the term.

So as I said, just engage with it and understand it. At the beginning, compare the nominal interest rate and the resulting monthly burden if the other parameters (term) fit.