Overwhelmed and Suspicious

Hello,

I have found a property and will buy it (Reihenmittelhaus).
Now it’s time for the financing. I have already been to a bank (offer available) and also have an offer from the internet.
However, I am completely overwhelmed by all the different offers. In addition, I am very suspicious of banks and financial people due to negative experiences in the past. On one hand, you think “hmm, good offer” but on the other hand, “isn’t there something better?”

I have already found different options and am not sure which is better.
Is it better to think rather conservatively and trust the advisor of the local, reputable bank or should one go for the best conditions and then conclude with an insurance company, building society, or direct bank?
Is it sensible to split the loan? That means one part with the bank, the other with an insurance company? Is that even possible because of the land charge to be registered?

For me, it is about financing 200,000 euros with 60,000 euros equity. With many local banks, I get a maximum interest rate fixation of 15 years, which frankly is too little and uncertain for me.
With some insurance companies, I get 25 years, but is my loan secure there in case of a resale?

I am almost desperate and with probably the biggest investment of my life, I do not want to make a mistake or throw money away.

Maybe I can get a few tips and experiences here from people who are independent and have already financed themselves.
I would be happy. Thanks in advance.

Best regards
ah1975

I can understand you. We also searched for a long time and ultimately turned our backs on our house bank after many years, even closing all accounts there. What the advisor there called the "pain threshold of the bank" in terms of offers was an outrage. We contacted an independent financial advisor who specializes in property financing. We asked him to anonymously inquire about his conditions at our house bank. Tada, almost 1% lower interest rate.

In the end, we managed to get financing with 20 years (we don’t need more) at an interest rate of 3.5%. We found that as a private customer you are not always honestly advised. A financial advisor can put banks under pressure with completely different background knowledge and may even have special conditions or volume discounts... whatever. After 3 banks, we were glad to have finally found a good advisor who gets the best for us.

And not only regarding the direct conditions, but also as you mentioned, the bank is not allowed to sell without our consent. That must be precisely regulated in the contract. Of course, the contract also has a few pitfalls, but none that you can’t handle if you know the conditions beforehand. And our advisor explained every detail in the contract to us. A layperson can hardly grasp that fiddly stuff in the contracts.

Don’t let yourself be rushed and compare until you have a good feeling. I think you can’t get the optimum anyway, if only because interest rates change every day. But if you get an offer you can live with well, take it. And don’t look back at what others get... that only frustrates :)

I can understand you 100% as well. Maybe a tip on how to get a proper financing with less worries: pay an independent financial advisor [Achtung: wirklich unabhängig!] for their services. They don’t focus on commission, because they don’t get any, but are paid by you directly per hour. This really pays off in the end—especially when it comes to more complicated financing options.

I have the same problem right now, except that I am not getting the full amount from the [hausbank].