Single-family house - developer rejected

Hello,

I have to ask a somewhat "strange" question.
We want to build a single-family house, and we also went to the bank, but now the loan was rejected.
With the statement "Our chosen construction company has a poor score at CreditReform."
According to our advisor, it is definitely not due to our financial situation.
Of course, you cannot "look inside" a construction company, but they build quite a few houses in our district. Theoretically, other banks should have an issue with that too, right?

Has anyone had a comparable case before, or heard of one?
Or is it really just an excuse from the bank...

The advisor also said that if we chose another construction company, financing would not be a problem.
But we don’t want that, since we are already quite far along in the planning with the current developer.

Questions upon questions....

Regards
Chris

Look in the Bundesanzeiger and check the financial statements of the past years. Maybe something can be taken from it - the IBG has also built many houses.

Hi Chris,

Hm... have you checked with other banks as well? Does it have to be this bank specifically?

However, such a statement from a bank would make me very suspicious. They have nothing to gain by unnecessarily badmouthing the developer!

You can view the developer's annual reports in the [Bundesanzeiger]. Maybe something will come up?

Best regards,

Andreas

Hi,

we still have an appointment at another bank today. Let's see what they say.

I just didn't know that there is also a criterion like that, where banks reject a financing.

Well, you never stop learning.

Well, if the bank doesn't like the construction company, then I as a potential customer of this company would quickly put the brakes on and immediately look for a new company.

Just because he builds numerous houses doesn't mean he has good creditworthiness.
There was also a "great" company with "great" prices in the neighborhood. The overpayments from the first house (during the construction phase) were used to pay the craftsmen of the second house. The overpayments from the second house paid for the third, and so on = a pyramid scheme.
Eventually, everything collapsed and almost half a dozen families were left with their started to nearly finished houses. Of course, the company always received more than the construction progress justified (so carefully check the payment plan), so everyone lost money - except for the person acting at the construction company, who was only a shareholder and salesperson!!!, but not managing director and not personally liable. Now he builds new houses under a different company, but otherwise with identical behavior.

Yes, of course we have the same thoughts. Today we are going to a local bank and will ask them what they think about the matter. They should theoretically know the construction companies in the area... Of course, after such a statement, you already have doubts about continuing to work with the construction company.