Whether to wait for the KfW share for the notary appointment or not

Hello everyone,

we have obtained a loan through a broker from DSL-Bank and KfW for the used house we want to buy. We have already received and corrected a draft purchase contract and have an appointment for notarization on 28.12.2012. The two loan portions (150,000 DSL and 50,000 KFW 124) were, as mentioned, arranged through a broker and we have documents in which both loans are always mentioned, but not explicitly that they are conditional on each other. However, according to the DSL document, the entire amount, i.e., 200,000 euros, is to be registered in the land register.

Now, the situation is that we have the written commitment from DSL, but not yet from KfW. However, this is said to be a formality. On the internet, I have often found that it generally takes longer with KfW. Some buyers had the notary appointment beforehand, some did not.

Our question to the people here in the house construction forum who already have experience with this: Assuming the DSL bank cooperates and the notary as well, is it common or not uncommon in this case to sign the purchase contract even though the KfW portion is still missing? Or is that not possible at all because the notary requires 100% bank commitment (which, however, is reported differently on the internet, see above)?

Of course, we do not want to lose the house to another buyer due to the 2-3 weeks waiting time for KfW. We also have a good feeling about the broker and would probably find a way to come up with the 50,000 euros by other means.

Many thanks for your experiences!
Peter

Hello Peter,

Merry Christmas!

We just had this experience: on the same day, we were at our bank to sign the financing agreement and afterwards at the notary to sign the purchase contract. The KFW loans were applied for by the bank through the Wohnungsbaukreditanstalt (WK). However, the KFW loans had not yet been approved at that time. A few days later, the bank informed us that the WK had not approved the KFW loans due to their risk assessment. We are required to contribute a certain minimum amount of equity additionaly or show a subordinated loan in the corresponding amount from our bank. The reason is the expected sales proceeds of the property in the event of our payment default combined with a low equity contribution. We will now contribute the required additional minimum equity and the WK will review the application again - and will probably approve it then.

Best regards and good luck, Michael

Hello Michael,

thank you very much for your reply. In the meantime, we have had the notary appointment, the notary did not deal with the financing at all, mortgage charges can be registered later. However, we included a clause that gives us one month until the financing is completed – until then we can withdraw. But we would probably buy the house anyway, even without the KfW. After the notary appointment we just had a better feeling to toast the purchase with sparkling wine . The confirmation from the passing-on bank also said casually that the KfW documents will reach us shortly in a separate post.

Basically, in my opinion, financing with KfW participation should somehow be treated separately, since it can still fundamentally go wrong (even if unlikely, more likely with the renovation programs). So actually there should be certain text modules in the notary offices that proactively advise the buyers.

As I said, the contract is signed, the main approval from the bank is there, only the KfW is still missing.

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Oh, by the way: We have now received a call from an architectural office from Bavaria, saying they want to inspect the house. I said that this makes little sense since we already have the approval. But they want to do it in any case, however "without estimating". What kind of bank condition is this about? Can the payout really still fail because of this? (In the loan application the inspection was a condition for the approval of the application, now it is listed as a condition for the payout....)

So again, many thanks and maybe someone has something to say about the "subsequent" inspection.

Best regards!

Nothing fails anymore....