Knowing the credit limit one year in advance – is that possible?

Hello everyone,

My parents want to leave their current house at the beginning of 2023, and we would like to buy it from them. My parents want to use approximately 1:1 the sales proceeds for their new residence.

Now my parents are already looking and have some projects in mind. Logically, they would also like to know ASAP how much money to expect from us, justified by planning certainty.

Does it make sense for us to already seek a conversation with the bank? It is still at least a year away. And during this time, some things will change for us.

The following will change during this time:
- The employment status to civil servant and the end of a probation period (currently: employed and in probation after a job change)
- Income slightly increasing
- Marital status to "married" from August
- The equity situation steadily improving (currently still low)

At the moment, I don’t even know what exactly I should inquire about at a bank under these conditions.
My parents would also appreciate an estimate of the house value from the future financing bank.

So, briefly asked: Does it make sense to talk to banks NOW? If yes, how do I start this story? Or is another way easier/better/more reasonable?

I’m not sure if the bank is the right contact person for that, at least not to determine the building value. Either you agree on a value among yourselves or you should hire an appraiser. An alternative could be information from the purchase price collection at the Expert Committee for Property Values (located at the cadastral office).

The bank can of course show you the financing framework they would go along with, meaning what amount would be possible. Whether they then provide a kind of short appraisal for a specific property to determine the lending value is probably difficult and also depends on the contact at the bank. Do your parents have any price expectations?

They don’t want to take advantage of us, but also not sell below value, and therefore want an "official" appraisal.

As I see it, that would be okay for us too – after all, no real estate transfer tax applies if we are married (right? NRW) That’s already a valuable saving on acquisition incidental costs.

The first and most important question would be - are there any other siblings?

Only if no - go to a financial advisor and discuss your situation. Current income and the project - age, size, area of the property. Then the advisor will get a value from the system. You can then take this value as a minimum value. After that, it depends on your parents and the location.

Otherwise, you should consider whether you want to bring forward the sale, and your parents become tenants. It is absolutely not to be expected that the interest rates next year will be below today's rates, meaning - it will become more expensive for you.

The first & most important question would be - are there any other siblings?

No.

Otherwise, you should consider whether you prefer to sell, and your parents become tenants. It is absolutely not to be expected that interest rates will be lower next year than they are today, meaning - it will become more expensive for you.

Doesn't that cause problems because of the probationary period and the switch to civil servant status? I forgot something crucial: The employment contract initially expires for the switch to civil servant status. Otherwise, it seems like a logical thought to me.

Doesn't that cause problems because of the probationary period and the transition to civil service? I forgot something crucial: For the transition to civil service, the employee contract first expires.

Ask the bank. Our bank doesn't mind my new probationary period either, because my income has increased by 20% as a result and my wife can switch from part-time to full-time if necessary... We always play with open cards in such matters...