Home purchase financing - experiences?

Hello

we have decided to buy a house. It is quite old and needs extensive remodeling and renovation. We are planning costs of around 100,000 for that. That means we would need to finance about 180,000. Now the question is: How do you best start? We have an appointment with an independent financial advisor first. Do you already have to pay for the consultation? Or does he earn through the sale of products? I guess I should have clarified that when making the appointment :eek:... Then I wanted to make appointments at two banks. But is that how it’s done? Do you get different offers there or do you just go to your main bank? And how is it with the planning? We want to extend and also need to go to the architect. Do you do that beforehand or after you've been to the bank and know if you will even get money?

Sorry if I asked a few very dumb questions but I have no idea.

What else should you pay attention to?

It would be nice if someone could tell me something.

A. Going to a financial advisor can be a good idea, they usually finance themselves through a commission from the bank.
B. Further offers from banks are good.
C. Only one offer from your main bank is simple and time-saving but actually quite dumb, as you can lose a lot of money.
D. You will not get an immediate approval for your loan at the first appointment. Depending on the bank and your financial means, you will receive certain requirements that you have to fulfill/provide (land register excerpt / photos / construction description / floor plan / proof of equity / employment contract / pay slips / proof of other loan agreements / for renovation measures possibly cost estimates ...).

In short: for a loan approval, you sometimes have a lot of running around to do, as the bank wants to secure itself quite well A. to see if you can handle the loan and B. if you don’t make it, if the property is even profitable.
If major renovation measures are planned, the bank may of course want to see a detailed list of the renovations with cost estimates.

Good luck with it, but always remember "an old house is an old house, where there’s usually always something to be sorted out."
Get started on the floor plan.

So I would first clarify the financial requirements, that is, have the renovation costs precisely determined and whether it is even worthwhile.

If necessary, an independent on-site consultation could also clarify what pays off and which subsidies such as [Kfw] or [Bundesland] could be used.

Hello!!! Before purchasing, I would definitely inquire whether it is still allowed to extend the house. The building authority can tell you this exactly.