House purchase - What financing terms can be expected?

Hello everyone,

I want to buy a [REH]; 100 sqm living space; 36 sqm expansion reserve; 50 sqm usable area; built in 2000; real partition. The price is €230,000, with all additional costs I am at €261,000. Equity available is €57,000 (32 thousand in the building savings contract). However, I would only contribute a maximum of €41,000, as a few minor things need to be fixed. Monthly income is €2,850. Bonus about €4,000 - 5,000 / year (but should not be included in the financing).

So a 96% financing. The price for the house is unbeatable! Hardly available anymore in the area.

I want to visit banks on Monday and conduct financing talks as soon as possible.

What conditions should be included? Interest rates? I want to repay a maximum of €1,000 monthly (preferably a bit less, but with special repayments).

How long does it take until the loan is approved?

Thank you very much Marcus

Better to stutter off without planning for ST. Especially with a used property, you want/need to do some things every year that require extra money. That would use up the ST you planned for. Overall sounds good - have you hired an expert to take a look at the house in the meantime? Bargains are often justified [emoji33]

Hello ypg.
ST not in the 1st year. However, a buffer should build up again over the years, then special repayments from it.

No expert has been commissioned. The man who owns the house has not been able to maintain it properly in recent years. Accordingly, cosmetic work is necessary, such as new wall and floor coverings, defective roller shutters, neglected garden. That’s why the price is low.

( 32 thousand in the building savings contract ).

Is it possibly ready for allocation and what building savings sum?

I would only contribute a maximum of €41,000. Because a few small things need to be done

Possibly part of it can be included in the loan-to-value ratio depending on the bank. So don’t focus too much on it.

I want to repay a maximum of €1,000 (preferably somewhat less, but with special repayments)

How old are you? Or when do you want to be finished?

What conditions should be included? Interest rates?

The crystal ball is currently broken. It also very much depends on how the building savings contract is utilized and what your risk behavior is.

The same goes for the bank; how fast. Some take 1-2 days; others want to send an appraiser. Then it takes a week. But all should be able to give you something written fairly quickly; stating they are basically willing

Is it possibly ready for allocation and what is the building savings sum?

Unfortunately not yet; building savings sum = €115,000 (30% savings phase)

Part of it may possibly be included in the loan-to-value ratio depending on the bank. So don't focus on that too much.

Ok!

How old are you? Or when do you want to be finished?

I am 29 years old. Of course as soon as possible. But definitely within the next 20-30 years.

The crystal ball is currently broken. It also strongly depends on how the building savings contract is utilized and what your risk behavior is.

The same goes for the bank; how fast. For some 1-2 days; others want to send an appraiser. Then it takes a week. However, all should be able to give you something in writing quite quickly; that they are basically willing

Ok thanks, 10 - 15 years interest rate fixation would be sufficient. The question is whether interest rates below 1.5% (for 10) or 1.8% (for 15) are possible?! Or if that is unrealistic.

Unfortunately not yet; building savings amount = €115,000 (30% savings phase)

Then in the worst case you only have €25k usable equity and thus a 102% financing. But a banker can answer that better for you.

I don’t know where you got your interest rates from, but you’ll be happy if you get around 1.75-1.80% for 10 years and 2% repayment with 100% financing or just below.

The interest rates you mentioned are currently only available for 60% financing.

The duration of the bank approval cannot be generalized. It can take 2-3 weeks but also 6 weeks depending on the bank. You also need lead time yourself to gather all necessary documents for the decision & review.