Need your advice on financing a house!

Hello dear forum community.

I have found a house that I would like to buy for myself and my family. I have no knowledge about financing and am really afraid of making a mistake.

I am 32 and work in a factory as a lathe operator and earn around €2100 net per month depending on shift allowances. In addition, I receive €368 in child benefits. My wife does not work because we have two daughters aged 4 and 1 year. In 2-3 years my wife will also work part-time again and thus contribute a little.

I pay rent including additional costs for garage and electricity of €650 per month and have no other loans or financing running.

The house I found costs €89,000 and I would need about €20,000 extra for roof, heating, electricity, and renovation work.

Unfortunately, I do not have a home savings contract and my savings are limited to about €3,000, which I do not necessarily want to put into the house but keep as a small cushion in case of any unforeseen costs.

At which bank or how should I take out this financing so that I get through it best???

Go to the bank, or to several, and get advice. You can also go to an advisor who can offer you something suitable. May I ask what exactly you want to do with the 20000€? You won't get a new roof, heating, electricity, and renovation for that if all of it is to be redone!!! You also still have additional costs, which are currently about 1000-1300€ just for the notary.

Oh dear... WAKE UP....!!! :rolleyes:

No, seriously, this is going to be tight, or rather impossible to answer.
Does the house and land only cost €89,000?
How do you come up with the €20,000? Have you checked what a new heating system alone costs? Including accessories, installation, and labor costs. I estimate that the first €10,000 will already be gone. Roof, electricity, and renovations? I hardly believe that will even come close to being enough.

Then next: Buying a house without equity is, let’s say... unreasonable. Your €3,000 buffer will be gone as fast as you can say "broke."

falls irgendwelche unplanmäßigen Kosten auf mich zu kommen.

You can count on that. If it’s an old house and it’s being sold so cheaply, you should seriously ask yourself why. In any case, you need an expert appraisal beforehand to examine the house (dry rot, mold, rotting wood... and who knows what else).

Regarding financing, I can only tell you this: rent-to-own is a fairy tale. As a homeowner, you have to expect at least €200, better €300, in additional costs. On top of that come your loan repayments and interest.

Example calculation:
Let’s assume you get €110,000 (for that, your property would have to be worth almost €150,000). Let’s say you get the money at 4% (I estimate you won’t get better, as the bank’s risk is very high).
With 1% repayment and a fixed interest rate for 20 years, you pay €470 monthly. After 20 years, you still have a remaining debt of €80,000. If interest rates then rise to 8-10%, you won’t be able to pay the follow-up loan.

Sorry if this sounds pretty harsh now, but you really have to stick to the facts. We know the dream of owning a home and understand how important that can be when you have children and want to build a nest for them. But you should stay within your means. Sometimes it’s simply better to rent your whole life and still go on vacation with your family for two weeks a year. Also think a bit about private retirement provision. You won’t be able to make the house pay off if it’s already an old house now. You just can’t and won’t want to invest that much so that it’s worth it in the end. I hope I haven’t offended you; I just wanted to be honest.
This is just my layman’s opinion.

There is nothing to add to the statements of "Der Da".

Regards

In house financing, it is especially important that the documentation of all incurred invoices is carried out properly. Then you might be able to take out an additional loan because you can clearly explain to the bank why. So besides the folders, always scan everything and come up with an organizational system.

I already sent Knezi a PM, but have not received a reply yet. Then I want to disclose my current financing to the rest:

Loan: 135,000 full financing
Nominal / Effective: 3.75 / 3.82
Repayment: 2.12
Fixed for 15 years
Monthly rate 660 euros
Remaining debt after 15 years: 79,626