When should financing be completed?

Hello everyone,

the following initial situation:
I plan to start building the house with a general contractor in May. My equity is sufficient for the house construction including incidental construction costs (including kitchen + a buffer of 20k). However, I need a loan of 80k€ for furnishing and landscaping the outdoor areas.

In your opinion, when is it advisable to take out this loan? Before the start of construction or shortly before the house is completed?

Thank you for your answers.

When do you think it makes sense to take out this loan? Before the start of construction or shortly before the house is completed?

Consumer credit or classic real estate financing? Have you already thought about a few 0% financings for furniture as a supplement?

Hello everyone,

the following situation:
I plan to start building a house with a general contractor in May. My equity is sufficient for the house construction including incidental construction costs (including kitchen + a buffer of 20k). However, I need a loan of 80k€ for furnishing and landscaping.

In your opinion, when is it sensible to take out this loan? Before construction begins or shortly before the house is completed?

Thanks for your answers.

It might make sense to take out the loan right at the beginning, specifically for the house. The conditions there are significantly better than for a consumer loan for furniture. Possibly, you might also get funding for the house and then rather use the remaining equity for the furniture. Banks usually don’t finance furniture or only at very high conditions. Of course, this means that you would have to register a land charge. You would have to weigh all the costs against each other.

No bank will finance the furniture for you or only at very high conditions.

The bank really doesn't care what the loan is used for. In the purpose of use it usually says capital procurement. It's a completely normal construction financing at completely normal conditions. For the OP in this size, possibly with a small loan surcharge, but otherwise at top conditions.

The bank really doesn't care at all what the loan is used for. The purpose of use usually states capital procurement. It's a normal construction financing with completely normal conditions. For the amount in question, possibly with a small loan surcharge, but otherwise at top conditions.

Thank you for the answer. Do I understand correctly that you can also take out a construction loan when the house is almost finished and then use the sum without restriction? Or is it then a personal loan with possibly good conditions?

We had similar conditions. The tip from our bank was to take out a construction loan of 100T€, 10 years as a full repayment loan. To pay the initial house bills with it and finish the rest with equity (Terrasse, Außenanlagen, Carport, Küche, Sauna, Möbel etc)