When it comes to building finance, as a prospective client you have to make well-considered decisions. After all, this is a lot of money. It is therefore worthwhile to deal with the topic at an early stage. Just like building a house itself, financing it with a loan should be carefully and seriously planned.
Already 0.1 percentage point difference makes a building loan over the years several thousand euros. It is therefore worthwhile to deal with the topic at an early stage. Once you have drawn up a financial plan for yourself, the next step is to go to the bank. Regardless of whether you want to finance an existing house or build a new one: You now need a financing confirmation for the seller or the property developer. With this, the bank agrees to finance the house.
It shows the seller that you are also solvent and can afford the property
Which loan option you ultimately choose, one thing is important for everyone: compare the offers! Always get several suggestions and talk to successful clients in the circle of friends and friends about their experience and handling, often you get very useful tips and tricks from people who have already followed this path.
What does the bank need?
You should already have some documents with you when you present them to your chosen bank. That should not be missing so that you can start planning the building finance.
- For employees: pay slips for the past 3 months,
- For the self-employed: income surplus calculation of the last 2 or 3 years,
- For self-employed: BWA of the current year (certified by the tax advisor),
- For self-employed: last year’s income tax return,
- For the self-employed: income tax notice of the last year,
- Land register information (draft sales contract from the property),
- Land map or official site plan,
- List of construction costs by the architect,
- Calculation of living space,
- Building description (property data sheet),
- Statement of personal contributions,
- Section / floor plan of the object,
- Financing with a third-party bank: bank statements (proof of equity),
- Helpful: Own list of financial resilience,
- Personal identification documents of all parties.
Equity 20 percent plus additional costs!
As equity, you can use anything that can be turned into money. This includes, above all, balances on checking, savings and overnight accounts, but also balances from building society contracts. If the building society contract is ready for allocation, you can also conveniently call up this money at short notice. Another source of equity is stocks and other securities. Most of these papers can be sold on short notice. If your equity is rather tight, a sale should usually make sense.
Further saved capital can be found in private life insurance and Riester contracts. On the one hand, both provide equity, on the other hand you have to accept discounts on your credit. It is ideal if the equity covers at least the ancillary costs and 20 percent of the purchase price. Then the risk for the bank drops so significantly that you make optimal use of the low building interest. If this is not the case, however, the banks are satisfied with significantly less.
Use state funding!
Responsibility for building and living and promoting it in the individual federal states often lies with the Ministry of Economic Affairs, in some cases also with the Ministry of Finance, the Environment or the Ministry of the Environment. Several ministries are often responsible, for example for different funding programs. If you want to build a house, contact the responsible department of your local authority immediately and get all funding options for your construction project today. With these responsibilities, builders quickly lose track.
But it is worthwhile to inform, because the funding from the federal states helps builders get into their own four walls. The granting of funds is usually handled by the respective state funding institute, for example by the state bank or state trust agency. These offer low-interest loans or grants for the purchase of real estate. These include, for example, the acquisition of real estate such as new buildings, energy-efficient construction, first-time purchases, second-hand purchases, as well as modernization, refurbishment and improvements in living quality.
By barrier-free conversion, expansion or a change in floor plan.
There are often other nationwide initiatives, campaigns and campaigns for home ownership and energy. Before building owners apply for funding, you should take a close look at the funding conditions for the individual programs. When promoting home ownership, self-use of the property over several years is often a prerequisite, and income limits are also often set. Those who have young children in the household can receive additional funding in many federal states.