Is financing possible with ING?

We recently financed with ING and had a similar nail-biting wait. What I can tell you is that it will probably take a while. We ultimately waited 4–5 weeks. In the end, it’s also a question of whether another appraisal needs to be commissioned. It’s important where the property is located and whether it’s worth the amount in the end. But it’s totally random how ING decides. That the preliminary check is green, as far as we have experienced, doesn’t mean anything. Unfortunately, you will have to wait.

We borrowed a bit more than you, but we also brought the land and had more income. Still, it was tight for us. The suggestion to buy the land now and build later would be a good alternative. Good luck.

Thank you. We initially had the idea of buying the land first and building the house later, which was recommended to us by two financial advisors. The reason: high interest rates and many banks won’t go along with it. Did you have to resubmit any documents due to the delayed processing time? (current payslips, bank statements, etc.?)

That's exactly right, the price for the house without interior work (painting, wallpaper, etc.) is exactly €225,000. We won't build a garage because the plot is too small for that, the carport is not included (it will come later anyway or for now you can have the simple solution), but there is a fence, chimney, a thicker Poroton brick, etc.

The chimney alone already costs close to 10k :eek:
I can't understand how this is supposed to work out cost-wise.
Another option would be to build significantly smaller. There are plenty of houses here with not much more than 100 m² living space, and you can still live reasonably well as a family.

We would have gotten a loan from Ing-Diba, but €200k equity is obviously something completely different from €20k.
I imagine it’s extremely difficult to switch from "camera financing" to such an austere life to be able to finance this house. If it gets unexpectedly tight for us, then there just won't be any vacation and we have been working 20 extra hours per week on the construction site for weeks now.

I have to revise my opinion and strongly advise against the plan.

Seriously, you want to switch from a consumer-oriented lifestyle (traveling every month, consumer credit husband) to living frugally and 48,000€ (!!) of own work on a construction site? Do you know how many working hours that is? And you want to do that pregnant or with a baby? Not at all. And your husband? He already has a full-time job + self-employment. How many hours per week is he supposed to slave away on the construction site?


Alright, let’s calculate:
165,000€ plot
225,000€ house
50,000€ ancillary construction costs
10,000€ kitchen
-----
Less than 50,000€ remain for the interior finishing of a shell house. With almost no buffer in the account. Doesn’t add up. And outdoor facilities, carport, or similar are of course not included here.


♂

The only thing I find strange here, despite many useful hints, is why every second thread opener is assumed to be incapable of their own calculations together with their trusted building partner?!

Correction 1: Ancillary construction costs are significantly less than 50,000 – the plots are sold fully developed, commission-free, without demolition, etc. We have the offers for the soil expert, surveyor, etc. The situation with the rainwater is also known to us and our acquaintances have also built their houses there, from which we know what the soil properties are like and were able to calculate the costs accordingly (of course, additional costs may arise with every project).

2. The house is not a shell house but a turnkey house without interior work. We excluded interior work like tiling, painting, sanitary because my husband gets the craftsmen and materials for this himself. He can also invest 2-3 months of his own time on the construction site (agreed with the employer). Then although no vacation will be possible, it doesn’t look like that anyway. I just don’t understand what this has to do with my actual question.

I just don't understand what this has to do with my actual question

Because the bank might make similar considerations? I would find it difficult to get a loan for you for the reasons mentioned. If unexpectedly 50k additional costs come up, it will be difficult.

Why did the financial advisors advise against it and why is there a higher interest rate? For us, it was no problem at all to buy the land beforehand. We financed it flexibly and recently had great interest rates. Meanwhile, we have paid it off through the house loan. This situation happens quite often.

The only thing I find strange here, despite many useful hints, is why every second thread opener is assumed to be incapable of calculating on their own together with the construction partner they trust?!

Presumably because the "construction partner" is less a partner than a company that wants to sell services. Concealing costs before the contract conclusion that are anyway "construction-related" is quite a common method. Your finishing work does not matter to the construction company either. Once you have accepted and paid for the better shell, the deal is done. Whether you then move onto a construction site because the money is not enough for all rooms... they don't really care. We are planning with a similar budget, with less own work and probably better fittings, but we also want to build significantly smaller (120-130 sqm) and our plot costs not even half. Still, I'm not sure if I can keep the 500,000. Don't forget, you can postpone a lot, but then you also need money for the carport, garden, etc. What monthly payment have you planned and what do you then have left to finance such projects? How did you calculate the ancillary costs for the new house? Even if it is much more efficient than the old one, with double and triple the size and outer walls in all directions, heating costs will tend not to decrease. Then there are things like property tax, insurance, etc. which are significantly lower for an apartment than for a house. What I do not like at all about you is that you both have open loans that are not necessary. Also the calculation with income and child costs. That little child benefit goes towards daycare (under 3 is expensive) and you need that if you want to work again. No stroller has been bought yet, no car seat, no clothes, etc. I think you underestimate the costs for a child.

The chimney alone already costs around 10k :eek:
I can’t understand how this is supposed to work out financially.
Another option would be to build significantly smaller. There are plenty of houses here with just over 100WF and you can still live reasonably well as a family in them.

We could have gotten a loan from Ing-Diba, but 200k equity is obviously something completely different from 20k.
I imagine it’s extremely difficult to switch from "financing a camera" to such a frugal life to finance this house. If things get tight for us unexpectedly, then there just won’t be any vacation and we have been working an additional 20 hours per week on the construction site for weeks now.

Yes, the chimney was charged to us for 6500K and is included in the financing amount. We initially looked at a 140m2 house; the reduced area makes the price difference 10K Euro. As I said, these are the promotional prices for the city villas, completely turnkey without interior finishing.

I don’t understand how a monthly payment of €970 + €500 ancillary costs (which, however, will come to us in 1-1.5 years when the house is finished and we have moved in and after my husband has potentially increased his net salary by another €200-300) can ruin life that much. ‍♀️ Surely there will be fewer trips or less stupid expenses because all the earned money goes entirely into the house. But that is a conscious decision and, in my opinion, the house is worth it. Especially when you consider that for a 3-room rental apartment you currently pay €1500-1600 warm. Then there is actually very little saving potential if you continue to rent and move to a bigger apartment (which will soon be unavoidable because of the child).