Question about financing (when changing the general contractor)

Following initial situation: for the financing of a new building, consisting of several components (annuity loan, Kfw subsidies, and building savings loan) which have been applied for and also approved (by the house bank and Sparkasse). However, we were also informed that the financing approval at the discussed conditions only applies to the targeted property. Since we have already submitted the construction service description of the general contractor to the bank, this is also part of the overall package of the house.

My question: Now it has turned out that instead of the general contractor we will be working with another company. We actually have to report its construction service description (from company 2) to the bank, right? What happens if we do not declare this now? Do we risk the overall financing because of this? Can the bank create difficulties because of it? We are now facing the signing of the land and house purchase! Should we only inform the bank about the change of the general contractor after the notary appointment for the land purchase? The real question is whether a change of the general contractor can jeopardize our financing.

What happens if we do not disclose this now? Do we risk the overall financing because of this? Can the bank cause difficulties because of it? But we are now at the signing of the land and house purchase! Should we inform the bank about the change of the general contractor only after the notary appointment for the land purchase? The actual question is whether a change of the GC can endanger our financing.

I honestly do not understand this question!

Building a house means entering into a temporary PARTNERSHIP with a provider/BU as well as often a financial institution. It is therefore not clear to me – since the word PARTNER says it all – why it should be so difficult for you to inform your financing bank _before_ signing the contract for work. Don’t you think that the bank will be left with a bad taste if you lie to it? That would be nothing else than signing a contract contrary to the submitted documents.

Aside from the fact that the bank probably does not care who you build with, it would certainly be beneficial for the young PARTNERSHIP to stick to the truth ;)

Rhenish regards

On the one hand, I see it similarly, but I do not want to risk the bank taking advantage of this by worsening the conditions. The construction interest rates have increased by about 0.5% in the last month. The bank might want to make money and takes advantage of this circumstance.

on the one hand I see it similarly, but I do not want to risk that the bank takes advantage of this by worsening the conditions.

But you do realize that the bank can refuse to "accept" your offer, since you - if you proceed as you apparently currently intend - have unilaterally changed the conditions? What happens then? Rhineland greetings

You are aware, of course, that the bank can refuse to "accept" your offer because - if you proceed as you obviously intend at the moment - you have unilaterally changed the terms? If this happens - what then?

Rhenish greetings

Then I will lose the financing with the good conditions. I understand that. But if I communicate this change now (i.e. before the notary appointment), there is just as much risk that the bank will not accept the new conditions. The question now is in which case the likelihood of losing the financing is lower. I would then choose that option.

and how about asking the bank. very likely they will say yes, without it becoming more expensive in any way. or are you planning something shady there? do you want to switch from a solid house to a cardboard house or what are you afraid of?!