Property/house with loan or mortgage? From whom to finance?

Hello,

my husband and I want to build in Lower Austria next year, but we do not have a plot yet. We know which subsidies we are entitled to, but we do not know which bank we should go to. Both of us took out a home savings contract 1.5 years ago because the old one was finished and paid out. At that time, we had not yet thought about building a house.

So which bank should we inquire about a loan from, and how many banks should one compare? Don’t they all have the same interest rate? Should one consider a loan or a mortgage?

The first step is to go to the bank, right? Because what use is a plot or a house purchase if we do not get financing? Does the bank tell us how much they will finance? We have about €30,000 in equity.

We look forward to your answers.

Hello

your main bank can, for example, carry out a household calculation and tell you what you can AFFORD at PRESENT.

A year later, everything can already be obsolete! The current situation is always checked. That means the current burden from the loan, your income situation, the equity, etc.

You also need to roughly know what a house including land costs in your region. What good is it to get about 180k but need 320k....

well then you already know that you can drop the project.

I would proceed as follows. go to your local bank and just ask simply what you can afford. You should expect a 2-3 hour conversation in which you have to disclose almost everything about your expenses. After that, your bank can roughly tell you how much credit makes sense. You can roughly estimate this yourself as well: €500 per €100,000 credit as a payment.
A detached single-family house will probably cost you somewhere between €250,000 and €400,000. Depending on size, technology and basement.
I know that prices in Lower Austria are much lower than here in southern Germany, but you don’t get it for free there either. I was definitely very jealous when my cousin bought a bungalow there that cost about as much as I paid for the land. Well, their land value was €15 / sqm building land :) with us you just add a zero and double the whole thing :)

The second step: go to an independent financing broker. And have them make you offers there as well. Now you have about a feeling for how the interest rates are and what is possible.

The last step: you need a building contractor who can fulfill your wishes for your money. What’s important here is not the price at the bottom right, but what is not included in this price... this is often where the problem lies.

I would keep your equity as a buffer.... something always gets more expensive. If necessary, agree on a return clause in the credit agreement... we were able to return 10% of the loan amount free of charge at the end... which we unfortunately couldn’t do because everything turned out to be a bit more expensive than planned... :)

I would start with a living space determination first! Then I know exactly how many square meters I need, from there the banker can better assess the situation. Example: granny flat. From there, one can better align with the equipment.

Best regards Waldemar

Living space determination... does something like that exist? I think everyone should be able to estimate for themselves what they need. For two people, 120 sqm is enough; as a family, I would recommend 140-150 sqm if no more than 2 children are planned. And as a large family, living well is possible with 180-200 sqm. Always remember. Everything you have must also be heated and cleaned. Even later, when the children have left the house. We planned for 2 children, but can accommodate 3 children. If there are more, a new building must be done :) [Gott bewahre :)].

Well, first go to the in-house bank and find out what you can afford, asking doesn't cost anything. We did it that way back then as well.