Remaining balance after construction completion

2015-06-05 11:36:00

Remaining credit usually goes back against a prepayment penalty or even more simply as the first special repayment

Whether and which receipts need to be submitted mostly depends on the loan-to-value ratio. If the financing is tight, you often have to provide a lot of documentation. If there is enough leeway, some banks waive the receipts (a balance between effort and risk). In the latter case, the kitchen is also not a problem

However, there are also banks that want every invoice as a rule.

2015-06-05 11:39:19

Remaining credit can certainly be negotiated, including the purpose of use. We were also offered whether we wanted to include a car or a nice vacation, but that really does not have to be. The kitchen was okay, but it could certainly have been financed separately or paid for with equity. However, we wanted to keep that as a buffer.

2015-06-05 11:44:33

There are also banks that basically want to have every invoice.

for example the ISB (state bank in Rhineland-Palatinate)

2015-06-05 12:19:50

Our financing institution took a relatively relaxed view.

Of course, we always submitted the progress payments of the construction company, the invoices of the excavation contractor or the landscaper, etc., and had them paid directly.

However, we also received two completely trouble-free blank draws of TEUR 10 each, for which no one actually wanted to see the receipts in the end. With that, we bought quite a bit in the hardware store and directly paid for other "small stuff" (cistern, pump, etc.).

After completion of the building, we were also able to draw the remaining loan amount of around TEUR 30 on a blank basis, since otherwise we would have had to pay commitment interest.

The prerequisite for this, however, was that an appraiser from our financing partner inspected the building and confirmed the completion.

As mentioned above, banks take a much more relaxed view of the whole thing if, for example, a maximum loan-to-value ratio of 60% applies.

Regards,

Dirk

2015-06-05 13:53:03

Our financing institution took a relatively relaxed view.

Of course, we always submitted the interim payments of the construction company, the invoices of the excavation contractor or the landscaper, etc., and had them paid directly.

But we also got two blank calls for EUR 10,000 each paid out completely without any problems, for which in the end no one actually wanted to see the receipts. With that, we bought some things at the hardware store and paid for other "small stuff" (cistern, pump, etc.) directly.

After completion of the building, since we would have otherwise had to pay commitment interest, we were also able to call the remaining loan amount of around EUR 30,000 on a blank basis.

However, the prerequisite for this was that an appraiser from our financing partner inspected the building and confirmed the completion.

As already written above, banks take a much more relaxed view of the whole thing if, for example, a maximum loan-to-value of 60% is in place.

Regards,

Dirk

Hi Dirk,

may I ask at which institution you were?

Regards,
Chris

2015-06-05 14:32:52

Hello Chris,

yes, of course - we financed with Allianz Lebensversicherung AG.

Regards,

Dirk

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Remaining balance after construction completion

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