House buying - No idea what one can afford

So on a financial calculator of a well-known site, I get something like this displayed:

Entered by me:
Monthly rate 1,750 euros - we could manage that already, with additional costs then a bit over 2k - currently we have rent of 1,200 and also have 1,000 left monthly, despite a low saving culture. Then some loans would soon be finished and more money would be available monthly.

30 years desired term, meaning even without a residual amount in old age, which would be fantastic, that would basically be finished right at retirement (I don’t know anyone who plans to actually finish that way)

2.5 % interest rate - which I probably won’t get in my case, but it’s also not totally unrealistic in the sense that no one gets it that low

The result was: maximum loan amount 442k with an initial repayment of 2.24%.

That’s just a guideline and the interest rate is probably a problem, but then I know in which direction it goes, for example, when our debts are paid off... Sounds quite different from most here... somehow...

If then maybe a new house with better energy, less risk of repairs etc... But certainly not a "property" like the one we have in mind. I just found out anyway that there are 2 purchase commitments, unless that was a tactic for new interested parties

Oh dear, things are hectic here. I won’t address the initial comments anymore. We are already going way too detailed.

But I will give you one thing to take away at this stage. You still have a lot to learn.

It all depends on everything! Just Google scoring, rating, and since 21.3. the Residential Real Estate Loan Directive. That will give you initial ideas of what counts and how it is evaluated.

No one can explain to you here what a bank does when, how, and where. But people here respond who partly have experience as customers, but also as bank/advisor/credit decision-maker or risk controller.

You could fill entire doctoral theses on how banks assess such things.

So on a financial calculator from a well-known site, I get something like this displayed:

Entered by me:
Monthly rate 1,750 euros – we could already manage that now, with additional costs then a bit over 2k – currently we have rent 1,200 and still have 1,000 left monthly despite a low savings culture. Then soon some loans will be paid off and more money will be available monthly.

30 years desired term, meaning even without a residual amount in old age, which would be fantastic, that would basically be finished exactly at retirement (I don’t know anyone who plans to be completely finished that way )

2.5% interest rate – which I probably won’t get in my case, but it’s not totally unrealistic in the sense that no one gets it that low.

The result: maximum loan amount 442k with an initial repayment of 2.24%.

That’s just a guideline and interest rate probably a problem, but then I know which direction it goes, for example if our debts are paid off... Sounds quite different from most here... somehow...

If it’s maybe a new house with better energy efficiency, less risk of repairs etc... But then certainly no "estate" like the one we have in mind. But I just found out there are 2 purchase commitments, unless that was a tactic for new interested parties

You also first need a plan for the financing. 442k€ can break your neck with, for example, a 15-year term. When the fixed interest period ends, more than half of the loan amount is still open. And if then the interest rate level, optimistically speaking, is 2% higher?

Entered by me: Monthly rate 1,750 euros - we could already manage that now, with additional costs then a bit over 2k - currently we have rent of 1,200 and also have 1,000 leftover monthly, despite a low savings culture. Then soon the loans would be finished and more money would be available monthly.

30 years desired term, i.e. even without a residual amount in old age, which would be fantastic, that would basically be FINISHED exactly at retirement (I don’t know anyone who plans to actually be finished)

2.5% interest rate - which I probably won’t get in my case, but it’s not totally unrealistic in the sense that no one would get it so low

Resulting in: maximum loan amount 442k with initial repayment of 2.24%.

Yes, financial calculators. Usually assumptions like 60% loan-to-value ratio are made there. I don’t know any serious calculator on the internet that maps more than 100% financing. Below that you can determine quite a few “good” benchmark values. Ultimately, though, the bank decides...

You wrote your dream house costs 399k€. Nice; but that does not yet include real estate transfer tax, notary and land registry fees, and the S-broker also wants his 3.75%. That makes a purchase price of ~449,000€ in NRW.

That means you can’t even get into the house with your financial calculator that shows 442k; let alone has a single wall painted.

A buddy bought a 130k house, has to completely renovate it, got a 200k loan, only one income and also many small loans.

200k€ is also doable for under 800€. He probably also had some equity; possibly still had a home savings contract lying around. Besides that, purchase incidental costs with a 130k house are significantly lower than with 399k.

But I think it will come down to number 1. Maybe pay off everything completely now, then only BAföG would come from my wife at some point (I think that is not relevant for scoring, right?)

Do you both have permanent employment contracts???

In summary, I see 4 problems:

[*]You don’t know what a house actually costs to actually move in [*]You have no basic understanding of construction financing [*]You have no idea what it means to finance in a high-risk area. Basically, from 95%/100% upwards or, as in your case, far beyond that (because different rules apply there) [*]You probably don’t even know how much money you really have left

The mere existence of any one of these 4 problems is a no-go for properly carrying out a construction/purchase financing. I am fully on the side of toxicmolotow

You still have a lot to learn.

Use reading the forum to learn from others

And again about your Wonderland conditions; because they don’t let you work quietly further :

[*]With a purchase price of 399,999 you already need about 450,000 in NRW just to call yourself the owner; rather 490,000 so you can actually move in
[*]You have to expect significantly higher repayment in the >100% range than all normal home buyers (already at 95% many banks currently demand 2.5% repayment). After all, they want to get rid of the risk as quickly as possible from their books. Because the bank cannot realize anything above the value in case of forced sale/auction. In other words, easily 154,000 in the above example is without any security for the bank, and therefore from the bank’s point of view initially wasted (assumption; 80% of the purchase price as well as half of the 40,000 on top are calculated as modernization)
[*]At a well-known mortgage comparison site with 100% financing and 15 years fixed interest you already get 2.6% interest. Let’s assume that everything above the purchase price and the value-increasing modernization has to be financed subordinately, then you come to a mixed interest rate of 3.15%

And then you have 490,000 (3.15% interest and 3% repayment) fixed for 15 years. And that for a rate of 2,511 EUR. But you will be done in about 23.5 years.

Now you shouldn’t apply more than 1/3 of your net income, or no more than 40% of your net income; whichever is lower should be taken. Even without considering your loans that would be 2,000 EUR, or 2,400 EUR; so the lower means 2,000 EUR.

I would say you have enough homework now and still a few years of time