Proof of financing from own funds

Hello!

I don’t understand: as a rule, the payment plan is formulated so that the client always pays upfront anyway.

Excuse me??? You should NEVER, NEVER, and really NEVER sign such a contract! Especially not in construction. These end up as construction ruins where the contractor goes bankrupt at half the shell construction, and unfortunately, the client is also bankrupt because foolishly he has already paid 65% of the total construction cost.

Payment is generally made according to construction progress. If the contractor wants a few bucks upfront for planning at the beginning, okay. But all my alarms would go off there. If the contractor is so strapped for cash that he complains about a payment term of 2-10 k€, he is probably not the right partner...

For us, the first money was paid after the basement was finished and the basement ceiling was in place... not a cent before!

Best regards,

Andreas

But that is the reality, of course you pay according to progress, but the payment schedule is often accordingly shifted. For example, we also paid 60% from the time the shell was closed. When did you build?

Depending on where the money is currently sitting, either a bank statement or a certificate from the bank is sufficient. Don’t show everything you have; that is nobody’s business with a contracting partner. With good equity capital, I would always work repeatedly with a local architect and local craftsmen. You are maximally flexible during the construction and involved in all decisions. Nobody asks for a credit report, and you pay the bills as they come and on time. In return, you get impeccable construction quality and a home for your life that truly corresponds to your living habits, preferences, and wishes. It is not cheaper that way, but in the result certainly more valuable and suitable.

What??? You should NEVER, NEVER, and I mean REALLY NEVER sign such a contract! Especially not in construction. Those end up as building ruins where the contractor goes bankrupt halfway through the shell construction, and unfortunately the client is also bankrupt because he foolishly already paid 65% of the total construction sum.

If you build with individual contracts to local craftsmen, you can of course keep paying in advance. They are stable, the risk is distributed, and you usually get the best work with the best materials. The "never" is quite relative.
With any prefab house provider, developer, or other complete provider, I would also be cautious.

That is the reality, of course you pay according to progress, but the payment schedule is often correspondingly shifted. For example, we also paid 60% from the time the shell was closed. When did you build?

We only paid 100% upon completion...

With good equity capital, I would always work with a local architect and local craftsmen.

That would indeed be my wish, but here in the area it is practically impossible to build independently with individual contracts because of the extreme workload of all good craftsmen, at least if you want to finish within a manageable construction time and with a reasonable number of hairs left around your bald head. So now it will probably be at least the small general contractor who has been working with local small craft businesses for years and where you don’t get promises from salespeople that are too good to be true. @everyone: Thanks for the tips, that was really very helpful! I will first try an informal letter from my bank certifying my creditworthiness for the construction sum. If that’s not enough, then account statements...