How much house is in it?

Hello everyone,

I have never applied for a loan before and my fiancé is also a "loan virgin" except for his education loan, which he is currently still paying off (yes, that’s quite rare these days at the age of 28 and 30)...
Nevertheless, we need a loan to build a house, which probably applies to (almost) everyone here.

Unfortunately, I don’t know how much a bank would lend us based on our income. I have also often read that 15% equity is recommended, but what we can “only” bring is listed further below.

About our situation:

Net salary:
Him: €3,400
Me: €2,800
-> Household: €6,200

Costs (generously rounded):
Cold rent: €600
Warm rent: €200
Food: €300
Pet care: €150 (food + provisions for major vet costs)
Electricity: €80
Cable + mobile phone: €80
Pension insurance: €120
Education loan: €300
Insurances (car, accident, disability,...): €200
Miscellaneous (clothes, IT stuff, etc...): €200
One wants to “afford” some nonsense/play: €300
Gasoline: €250
-> total: €2,780

Difference (without savings): €3,420
Due to the €600 cold rent that would disappear with home ownership and €500 per person that we would like to save monthly, we would have the possibility to afford €3,020 per month for a home.

Rounded, that would be about €2,500 per month without giving up too much quality of life (also to exclude that I forgot any costs).

Equity: currently just under €40,000, but we would rather not invest all of that - or if we do, the credit limit would have to be higher to cover unforeseen risks.

Professionally, we are both in the IT sector (SAP consulting).
The chance that we become unemployed is negligible here. Bank advisors know that, right? So, regarding willingness to pay. Or is it bad that we both work in the same sector (but for different employers)?

Can you give me a rough idea of what expectations we could work with?
Please feel free to thoroughly tear me apart if that helps - I want to go to the financial advisor as realistically as possible and not wake up with a black eye later on.
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Wish:
What we hope for is a total of €600,000 with the longest possible fixed interest period. This should include the land, pure construction costs, incidental construction costs, and exterior facilities (the simpler jobs like spackling, painting, laying floors, installing doors, or laying outdoor paving we can manage ourselves - only material costs would apply here).

So... that’s probably it for now regarding financing. I am aware, though, that €600,000 will not buy a 300 sqm passive house standard villa. Unfortunately^^

Best regards,
Katharina

Edit: Totally forgot, children are “not” planned yet. Not at all in the near future and I’m not even sure about the distant future.
Edit 2: Added gasoline to costs and recalculated again

So the costs are unrealistically set, I find 10 euros per day for food quite frugal. According to statistics, chronic overinsurance is common among young career starters...

But to the point: 600k loan with 40k equity some banks will not do, with the rest it will get expensive. With the planned amount you can definitely do something, but don’t overstretch yourselves with the installments. I would want to stay well below 2000 euros with the salaries.

One more thing by the way, since I roughly come from that area: do you know Murrhardt? Personally, I would never voluntarily move there.

To get started, a few questions/thoughts:

Why do you have so little equity? Is the savings rate and thus the possible loan installment perhaps not quite as high because money keeps leaking elsewhere?
Do you actually feel comfortable spending about 50% of the monthly income on the house? Less is recommended.
What happens if a child arrives during the loan term? Change in repayment or not being able to cover the installment anymore? Would both of you quickly return to full-time work with a child? What childcare costs would that entail?

Have you already looked at what plots of land cost in your desired location?

Primarily, you need to answer these questions for yourselves, but in short: I consider 3000 per month far too high.

Is completely off-topic, but I like the "Unfug" budget

Hey, thanks for your honesty
I already suspected something like that.
Nevertheless, we will go to a show home exhibition nearby tomorrow to see what's out there and what we like. And we will also try to make appointments with independent financial brokers to get advice.
If the interest rate really gets that bad with our equity, then we'd rather save a bit more. We would like to take advantage of the current low interest rate, but not at the expense of the house size.

Oh, on the topic of savings: I haven't been in IT consulting for very long, before that I was in education (and the pay there is really as bad as everyone says). I first bought myself a new car from my previous savings because the gearbox on my old clunker gave up

: The nonsense budget is definitely the most fun

Break free from the fairy tale of low interest rates. Construction prices have practically exploded!

Now to your conditions:

Income is far too low, does not match the loan request and low equity.

And a house for 600,000 all in is difficult to realize or only possible with significant restrictions or mini..