Living space suddenly only usable space?

The
same now with the new build ... I say the house that I put there will be worth 800K (example) so I take out a 350K loan, the rest is equity ... The bank says great, we'll do that .... whether I then put up a massive cabin with fancy stuff or a cheaper prefab cabin, unfortunately the bank doesn't know that either ... they only come by when the house is finished, what do they do then if that doesn't match? nothing.

Our bank wanted to see the construction description, floor plans, sections and elevations as well as a detailed calculation on our part (inventory, outdoor facilities, costs on the construction side). I don't think you can just take out sum X without telling them what you want to do with it.

We also had to specify in detail what we want to build with the bank's money. Of course, no one comes to check whether it ended up being the €80 tile or just laminate. However, I can imagine that this could quickly lead to fraud, so it's better to be careful.

Banks always want a calculation of the living area to estimate the value of the house. Depending on the bank, there are forms where you have to enter the room data. You can quickly find, for example, the "Ing Wohnraumberechnung" via Google. Whether every bank checks this in detail or just files it away is another matter. Personally, I would not want to deceive or defraud the bank.

But it is not only the bank's risk, but also the personal risk in the sale. The place has mathematically only 100m² of living space, so it is only worth that much accordingly. That’s just how it is, and you can now calculate how many euros you want to pay per m². If it is worth it to you, then buy. The property is probably correctly calculated and really expensive.

I once let a purchase fall through because the basement and too much attic space were counted as living space. There were a few other discrepancies in the sellers’ information, but in the end, the costs were too high for too little house. Even after 10 years of repayment, I would have still owed more than the property value.

Our bank wanted to see the construction description, floor plans, sections and elevations, as well as a detailed calculation on our part (itemization, exterior facilities, costs on the client's side) for the financing. I don't think you can just take out sum X without telling them what you want to do with it.

We even experienced that after receiving the mentioned documents, the bank commissioned an internal appraiser before approving the loan. Result: The appraiser states a value of xxx € for the house, the rest must be covered with equity. The problem is, the sum did not even correspond to 45% of the construction costs...

It is simply different.

But as naïve as described by snowy, I have actually never experienced a bank like that. There is at least a comprehensive file. Some also send appraisers during the construction phase or for existing properties before closing.

So that was the case with us and with my father too ... Bank came First look After completion ....