How much could we finance?

Hello,

My wife (1400 net, permanently employed for 4 years), I (1400 net, permanently employed for 7 years, increased protection against dismissal through works council) and our daughter (184 child benefit) have been thinking about building a house for some time.
Currently, on the cost side, living expenses are:
500 euros cold rent
170 euros additional costs to landlord for garbage, sewage, water, heating, building insurance...
92 euros electricity
211 euros annuity loan (expiring)
23 euros installment loan (expiring)
Total liability for "heated" living 996 euros
Yesterday we had a financier from a large construction company who was supposed to clarify what we could afford. As a basis for calculation, we gave him the above data, or rather he inquired about it.
Further conditions were that we have no equity, that a plot of land of 500 sqm costs 75,000 euros (fully developed), and that the house should be turnkey with about 130 sqm living space, including finished exterior facilities. His calculation was as follows:
75,000 euros land
25,000 euros incidental construction costs
170,000 euros turnkey house with exterior facilities (prefabricated house KfW 70)
Total costs 270,000 euros
Since we did not want to bring in any equity, we thought financing would look bad at the latest, but it did not, it looked like this:
50,000 KfW bank 2.46% repayment
50,000 other funding pot 1.2% repayment, 10 years fixed interest
120,000 bank loan 1.2% repayment, 10 years fixed interest
270,000 total financing without equity, monthly credit rate 943 euros
We do not really focus on a high repayment rate because we want to add special repayments, which would be possible at 5,000 euros per year (I think the KfW bank was excluded).
943 euros initially did not seem impossible to us, if you then include 300 euros as additional costs for the house you would have a warm load of about 1250 supposedly.
With 2,984 net income that would leave a remaining amount of 1,734 euros. Then there was a calculation I did not quite understand, from the 1,734 euros, 675 euros were deducted for me, 250 euros for my wife, and 250 euros for the child. Our household would have a surplus of 600 euros with the burden at the bank, and with that the financing would almost certainly be approved.

My questions now are:
1. Is the price for a house and everything related reasonably realistic?
2. Is the financing really as simple as it is suggested?
3. What would be a realistic amount to finance with our income situation? (or should we even build at all)

Thanks in advance for answers

I do not know your age now, nor did I feel like guessing the interest rates.

It can work out well, but it doesn't have to.

If you can answer yes to the following two theses, then it is an option.

1) The interest rate will not be significantly higher at the respective fixed interest periods than it is now.
2) You want to pay off your house over 45 years.

However, I consider the house price to be very optimistic.

What have you done so far with the surplus capital, given that there is no equity?

Oh yes, where in NRW do you want to build?

Our ages are 35, 30, and 4. We want to build in Salzkotten, which is near Paderborn. The land price is fixed by the city that developed the building land, so the 75,000 euro costs are certain. I cannot say the exact interest rates now; the KfW bank was, I believe, 2.36% the second promotional loan was 2.75% the bank loan was about 3.5% (3.4 something). I did not say that we have no equity; I only said we want to build without it, which also has a reason, but more about that below, first where the surplus goes. Surplus capital has so far gone into a building savings contract (ready for payout, 5,000 euros in it), a daily allowance account, 2 savings books (about 12,000 euros in them), Riester pension plan (can be neglected as only minimum contribution for state subsidy) + unit-linked life insurance/pension insurance (about 20,000 euros currently in it). And then we also save about 50 euros every month for our daughter since her birth as a starting aid for her own life later, I don’t know exactly what this is called specifically. But we do not want to use this capital for now as it is our absolute emergency fund and we have a completely different idea so we do not have to pay off for 47 years. We moved away from our home region because of work and both my grandparents and hers own real estate, as well as parents, which we later cannot (all) use, since it is rather unlikely if we decide to build that we would move back to the home region (at least not before finishing our working life). I hope this is not misunderstood here; I certainly do not wish death on anyone, but it is a fact that at some undefined point in the future we will have to dispose of and sell it. That would then be the refinancing, and that is why we are not too strict about 1.2% repayment now but want to make sure we still have room for contingencies and keep the rate small.

So, I think I have answered the 47 years question, the question about the interest rates, if I knew that I think I would play the lottery. We also believe by now that 15 years are safer, but I can’t say to what extent that affects the loans, then the interest rates are higher again, but we will definitely push that with the next advisor.

I cannot and do not want to assess the construction costs; there is enough information about this in the forum.

For financing, go to your house bank and get an offer, as well as to independent financing advisors/brokers and listen to what they recommend. I would not limit myself to an advisor from the construction company.

The calculation you mentioned in your first post is basically a calculation from the bank, which uses flat rates to check your creditworthiness. Actually, you would deduct the flat rates from the total net income, and the remaining amount is then available for financing.