Is financing possible with ING?

  • Erstellt am 2020-12-13 19:55:01
J

Janabalenciaga

2020-12-15 06:58:50
  • #1

That gladly as option 2, we will definitely deal with the topic of variable loans. However, the path described as „all-in“ has already been taken half way. Therefore, we now have to try to carry it through as I first described.
If the bank doesn't cooperate, etc., we are out of the construction contract and can try to secure the land as Plan B. Thanks for this suggestion.
 
M

moHouse

2020-12-15 07:12:17
  • #2
Don't take it personally!
The written word is often read a bit "meaner" than the other person actually intended. There are also occasionally some strange statements here. Try to overlook them.

Basically, you don't have to post anything here at all.
If your offer + planning is solid and reliable, then everything is fine. Just take the suggestions for missing items on the list with you.
You can't blame the forum for doubting some items. There's already a lot of experience gathered here.

If you write in a Mercedes forum that your neighbors bought the new S-Class for 15,000 euros and presented you an Excel spreadsheet as proof, you shouldn't be surprised by resistance and skepticism.
If you trust your neighbors, all is well. None of us know them as well as you do.

One more note: it could be that you don't get out of the contract immediately if rejected and the seller may assign their own financial advisor to you again. That doesn't have to be bad. But it could also mean that somewhat more expensive options like subordinated financing come into play.
If that should be the case, you will also get good information about it here in the forum.

What I don't understand: I often read that equity, which is not very abundant anyway, is taken out of the financing to pay certain ancillary costs separately.
Why? Put everything into one overall financing pot along with the equity. That's only positive for the loan-to-value ratio.

Simply put:
Better 20,000 equity on a 110,000 financing sum than 10,000 equity on 100,000.
Once it's 18% equity, the second time only 10%.
With larger sums, the difference is no longer so immense. But still there.
Or do I have a flaw in my reasoning?
 
B

BackSteinGotik

2020-12-15 07:37:38
  • #3


1) If it is individually contractually agreed, certainly no problem. But that is not the case for everyone - see "company practice"..
2) You yourself write: "no significant equity: 30k€ in the account." - you necessarily pay the ancillary purchase costs for the land and the fence from that. With the equity, your loan-to-value ratio doesn't really get better.
3) Working more is simply not always possible - hence the question. If you have such a flexible position, all good.
4) Exactly.
 
G

guckuck2

2020-12-15 07:49:44
  • #4


Rough comments in parentheses behind the items.

By the way, the problem with construction service descriptions is not the point that they explicitly refer to the builder. Anyone can see that and obtain offers.
Worse are the points that are not mentioned, because only what is listed is owed, and the layman does not notice that something is missing.

One example in the present construction service description are the rainwater pipes ending above ground. At least a subtle hint that something will not be finished there.
Some waterproofing work is completely missing, however. Also e.g., construction power connection and distributor with regular maintenance (in total €2,000, missing in calculation).
The crane is also missing. It basically works without it, but some subsequent trades will curse and prices will increase if none is there.

In addition, trades such as scaffolding are mentioned but not further qualitatively/quantitatively described. One would be erected, whether it remains there without extra costs until the end of construction is not stated. As it is written, it will be dismantled again as soon as the shell constructor is done.
 
N

nordanney

2020-12-15 07:59:01
  • #5
Then honestly communicate this to the bank as well. Then add €20,000 as own contribution for bringing the materials onto the walls and floors. You thus arrive at house costs of €498,000. Now the bank comes and evaluates the items. First of all, we deduct €15,000 for the kitchen, which does not belong to the house. €483,000 remain. Not all incidental construction costs increase the house value, but we will ignore that for now. From the €483,000 = market value, we deduct 10% safety discount to arrive at the lending value. That is €435,000. Your financing of €499,000 therefore leads to a loan-to-value ratio of 115%. Now you can google 115% financing yourself. We would not want/could not offer it to you. Statement from ING on a full financing (especially the last sentence is interesting): This is what a successful 100-percent financing looks like An example calculation shows how a 100% financed house purchase could work: A young couple, both in their late twenties, have a good income and expect salary increases. The house the two want to buy costs €350,000. The existing equity amounts to about €36,000 – just 10%. To keep some security, the couple decides to pay only the incidental purchase costs such as property transfer tax and notary fees themselves and to finance the entire purchase price. Thanks to a KfW portion of €50,000, they can get a favorable interest rate of 1.67% on the remaining €300,000 with a 15-year fixed interest period. For this, they pay €1,600 per month. With this, they simultaneously repay enough so that the house is paid off after 21 years.
 
W

WilderSueden

2020-12-15 08:40:27
  • #6
To put this example into perspective for , that is 5% repayment. For the bank, there is only a risk for a few years with this repayment. The financing discussed here with 1% repayment and an enormous residual debt is miles away from that.
 

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