House purchase 60,000, financing 80,000, equity 20,000

Hello,

we want to buy a house. Purchase price 60000, 20000 equity and renovation costs are about 35000. So we would like to take out 80000.

Is that possible?

We have an offer with a 20-year fixed interest rate:

50000 from Deutsche Bank, 4.55 interest

and 30000 from KFW 3.9 interest with 15 years fixed interest, is that okay?

Will this be approved?

We had an offer from VR Bank before for 80000 with 10 years fixed interest and 4.40 interest. But a security of 10000 euros would have to be provided, which we do not have.

Does every bank now accept the securities with us?

Best regards Christina

Hello Christina,

the conditions you mentioned may already be outdated. Have the interest rates possibly been reserved for you?

I currently have the following conditions:

50,000 EUR at 4.60% fixed for 15 years and
30,000 EUR KfW at 3.95% fixed for 15 years

The blended interest rate is 4.48% effective.

Whether the financing is approved also depends on your family situation, your income data, and the content of your Schufa.

Banks vary in their willingness to take risks, and therefore it can happen that one bank requires additional collateral from you, while another does not.

In particular, the modernization works are assessed very differently. Sometimes only 30, 50, or 60% of the costs incurred are accepted by the banks as increasing the market value. A few banks also recognize 100% of the modernization costs as value-enhancing measures.

Best regards

M. Thiemann

Our offer is from last Friday... The lady was there and now she wanted to get back in touch tomorrow regarding the financing to see if it works.

We haven't reserved anything... at least I don't know of anything. We signed some kind of self-disclosure and she had a financing offer ready for us.

I think that we will get a loan under these conditions after the financing offer, right?