Is financing possible?

Good day,

my girlfriend and I would like to build, but I am wondering if financing is even possible.

I know it's best to find out by visiting a consultant, but I thought I would ask what you think beforehand!

I am 24, permanent contract, €2100 net (end of 2012 €2200 net)
She is 24, permanent contract, €1100 net

A plot of land worth €34,000 is available and paid for!

Additional equity is around €30,000, by the end of 2012 about €40,000!

We would like to start building in 2013, so in a year!

The problem worrying me is that I still have old debts, namely the following:

Car financing €20,000, paying €300 monthly
Loan €10,000, paying €180 monthly

I will have paid off the €10,000 loan by the end of 2012 through special repayments, so only the car financing will remain with a residual amount of about €16,000 by the end of 2012.

The costs just for the house will amount to about €170,000 plus fees.

So we would need to finance an amount between €150,000 and €160,000.

It is often said you should calculate so that you can handle it with one salary, which means at the beginning of 2013 I would earn €2200 net, from which €300 for car financing would still be deducted, so in the end €1900.

What do you think, what are your experiences, would financing be possible like this or better to stay away from it?!

Thank you very much in advance!

I would be careful regarding the repayment of the outstanding loan. It is said that if you pay off a loan early, it will be recorded negatively in the [schufa]. You wouldn’t want to cause any problems for yourselves or have to wait until the [schufa] is in order again.

okay, I would then get information about how that works beforehand, otherwise I would have to repay the loan over its normal term ..

Tip beforehand, don't include the car loan in the mortgage. That's often done, but it will cost you a lot of money.

170,000 EUR for the house. But that's without extra wishes and more will be added. How much does a plot cost for you? Additional construction costs 35,000 EUR. Interior finishing. Basement? Garage?

I bought for 215,000 EUR, all inclusive approx. 270,000 EUR, with plot and new build it would be 380,000 EUR for a comparable property.

As I said, we have bought the plot, we have 3 years to build on it! 780m² for €35,000, additionally we now have €30,000 in equity and by the end of next year also €40,000 in equity!

The €170,000 should only serve as a guideline without additional costs!

I am interested in what your experiences are, whether one would get such a financing or if it would be better to leave this one alone!

Because as written above, we are only considering my salary at the moment, €2100 net minus the almost €500 I still have in obligations, leaving only €1600 plus my girlfriend's salary!

With the property, there is of course enough equity available, which is already great. The loan for the car is a bit of an issue, but it shouldn't be a problem for the bank. Plan more precisely how much money you have to put down _all inklusive_ for the house. Then I can help you more accurately with the financing.