Realistic financing opportunity?

  • Erstellt am 2020-08-08 18:33:41

same_da

2020-08-08 18:33:41
  • #1
We want to finance a terraced house north of Berlin in Brandenburg. We initially had an approval from the bank (with a written offer) based on which we also reserved the house. Now this is wavering, and we are naturally uncertain whether it will still work out.

Here are the data, somewhat summarized:
We are both 38 years old; not married
He: permanently employed; full-time
I: self-employed, part-time
Children: 2 (5 and 3 years old)

We can actually only count on the man’s income: 2900 net and child benefits: 405. So a total of €3300. His creditworthiness is excellent. No old or current loans. Not even student loans received during his studies... everything was earned independently.

We have no equity because due to our children we both worked part-time and could not build any savings.

We therefore need 110% financing of at least €316,000... that would be the absolute minimum for the purchase. Naturally, we would prefer somewhat extended financing of up to €350,000, so that we can design the interior finishing according to our wishes, e.g. underfloor heating, multi-split air conditioning (facing south)... fittings that would be more complicated and expensive to install later.

There is a parental home that can be pledged as additional security.

Additional income: my self-employment €350-500 (only a secondary activity) plus permanent part-time employment from November €900; family support €200. So we actually still have (conservatively estimated) €1200 additional income, which apparently cannot be taken into account. I do not want to be included as a co-borrower because of the pledge on the parental home and the risk due to my self-employment.

We were thinking of an annuity loan with about 35 years term, 2% repayment rate, with 5% special repayment, which we can actually afford in the next few years due to salary increases. The goal is not to completely pay off the house eventually, but rather that after about 20 years a manageable residual debt remains, which can be redeemed by sale and possibly an apartment can be purchased.

So, now the question... are these realistic conditions or am I building castles in the air?

I could now break down our expenses, but banks always oppose their flat rates anyway. So it is pointless. However, we have no consumer loans, only one car (and that will remain due to regional train connection).

Best regards
 

same_da

2020-08-08 18:54:18
  • #2
I can still add object data:

Terraced house in the middle; 145 sqm living space; WEG, monthly additional costs approx. €350; purchase from the developer, i.e. no broker fees.
 

danixf

2020-08-08 20:11:53
  • #3
Are the 316k the selling price or have you already included all additional costs? What is included in the 316k? That would be about 1.1 repayment. 350€ additional costs is too little. Internet, gas, electricity, insurances, garbage, taxes, reserves... It is doable. I think you should still have talks with other banks to have something secure in hand.
 

same_da

2020-08-08 20:34:26
  • #4
Thank you, that cheers us up a bit.

€316,000 is indeed the purchase price including notary and real estate transfer tax. For the renovation, we could actually set aside about €10,000 until completion. Then the renovation will naturally be a bit more economical than I would like. But we dare to do the plastering, wallpapering, and also the bathrooms ourselves. Things I have no idea about, like laying network cables and the connections for a guest toilet, we will have done and that is included in the €10,000... then it will just be the €7/sqm laminate and not the €28/sqm vinyl floors.

€350 ancillary costs is actually an example calculation from the developer, who appoints a manager for the condominium owners' association. Reserves still have to be decided... but garbage etc. is all included. However, it can indeed increase, we are aware of that.
Internet, electricity etc. I count more as living expenses, which are also incurred in an apartment... can be a bit more because of more living space... however, KfW 45, so it should have better insulation than our current apartment from 1979 with old wooden windows. Roughly estimated.

Does anyone have experience with whether the mother of my partner in life can be included as a co-borrower? Would that affect the loan amount or the approval or is that rather unusual? (She is fully employed, a civil servant.)
 

danixf

2020-08-08 20:58:42
  • #5

I would also have tried to get something from the bank. Otherwise, that is quite a good price for the size. Are outdoor facilities included? The kitchen is also missing.


Sure, you can do that. But you and she should be aware that she is on board in the worst case...
 

HilfeHilfe

2020-08-08 21:19:51
  • #6
Hello, that is too little income and no equity with too much loan. You cannot be in employee status?
 

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