House feasible or are we overextending ourselves?

Hello,

we are in our early 40s, have 2 children and are both employed in secure jobs (wife part-time 50%). After years of searching, we have now found a house from the developer that we would like to buy. Unfortunately, construction prices in the Rhine-Main area are outrageous. We would need a loan of 640,000 euros. Equity (approx. 20% of the purchase price), incidental costs, reserves for garden, kitchen, moving... included. We currently pay a warm rent of 1,400 euros and save 2,000 euros every month without restricting ourselves in any way. So we would have about 3,000 euros monthly to repay the loan. We are not sure if we are taking on too much.... First appointments at the bank are scheduled for next week, but I would just like to have a few thoughts on this in advance.

Fits.. 2700 € would be 5% - and let's be honest - if not now, then when? Your children still benefit from it, interest rates are as low as ever.

Hello,

640,000 euros in credit would simply be too much for me. What happens to the loan if the interest rates rise after 10 years? Why do you absolutely want to build in Dreieich, it is extremely expensive there?

Best regards
Sabine

We are currently paying a warm rent of 1400 euros and saving 2000 euros every month without restricting ourselves in any way. So we would have about 3000 euros monthly to pay off the loan.

Are other buffers, reserves, or savings rates already taken into account here?

We have included a buffer of approximately 40,000....might be a bit tight?

To be able to truly answer your question, you should state your incomes, otherwise no realistic assessment is possible