Is construction financing manageable?

Hello,
I have also looked at the calculation as well as the bank's proposal.

I would reconsider the following:

1. The ancillary construction costs, if you are still calculating them with 20,000, are too low. 40,000.00 is quite a figure but then you are prepared for surprises.

2. The acquisition costs of the kitchen are also set too low.

3. Children = costs for clothing, kindergarten, school and leisure, i.e. should be taken into account when calculating a repayment.

Now to the questions:

1. Is the KFW loan necessary?

2. Why building savings? Why not an annuity loan?

3. Would another builder possibly be considered?

4. Would a smaller house be an option?

5. Has a soil report been prepared for the building plot?

6. Would gas with underfloor heating not be an alternative for the beginning? With underfloor heating, a later retrofit is possible depending on the building envelope.

The equity side looks good! Not many builders start with so much equity.

Tip: There are more banks than the “Hausbank“. Listen to different opinions. Always remember: if it goes wrong, it goes wrong for you. The bank gets the house. They don’t care! They want and have to grant loans, that is what they live on.

I wish you a Merry Christmas for now :-)

Best regards Eve

That is a very interesting question..... but I would like to point out another problem here.

The middle class in Germany is extremely important for the economy..... but banks and financial institutions simply do not believe in the economic success of the businesses. Different tests showed that almost all requests for construction financing from self-employed persons or freelancers were categorically rejected. Although more than enough collateral was provided.

In contrast, an employee with little equity and a fixed-term contract was sent around. He received approval in 75 percent of the inquiries and could have then built a house. Although no collateral was provided here..... I find this behavior of the banks rather incomprehensible....

I find this behavior by the banks rather incomprehensible....

And once again, all banks are being painted with the same brush...

Obviously, a Porsche is the same as a Lada.

Sorry, I have rarely read such nonsense.

The ever more widespread "stinginess is cool" mentality has also left its mark in the camp of credit institutions. Wanting to pay no fees but expecting well-trained advisors who simply also cost money - that just doesn't add up.

Therefore, many banks are now forced to offer only standard products that even a freshly trained banker without any professional experience can understand and advise on - and an independent building financing customer often no longer fits into these standard products.

There are still banks whose advisors are able to understand a balance sheet or a business management report - there, with appropriate creditworthiness, financing for this customer group is also available.

But it does not work for free!

Moreover: The private customer in the example from at least has his property as security - so to speak of no collateral here is somewhat strange...

Regards,

Dirk