ᐅ House Building Planning Process! When Should You Schedule an Appointment with the Bank?
Created on: 27 Aug 2019 20:20
Z
zipfelklatsch
Hello,
we are also planning to build a house. We already have a plot of land and have had an appointment with the builder. We have designed the floor plan. It will take about 2-3 weeks until we receive the finished floor plan plus 3D visualization. Then we will get the offer.
Now I forgot to ask the architect how the process with the bank works.
Can you help me with this? When can I go to the bank to discuss the terms and get a loan offer? Is it probably only after the builder’s offer has been prepared?
we are also planning to build a house. We already have a plot of land and have had an appointment with the builder. We have designed the floor plan. It will take about 2-3 weeks until we receive the finished floor plan plus 3D visualization. Then we will get the offer.
Now I forgot to ask the architect how the process with the bank works.
Can you help me with this? When can I go to the bank to discuss the terms and get a loan offer? Is it probably only after the builder’s offer has been prepared?
nordanney schrieb:
That’s something differentYes, I guess I was too imprecise overall.WingVII schrieb:
You need the building permit / planning permission for the mortgage. That’s where I’m currently stuck.In your case... we don’t know why. I also think that’s nonsense, because a building application should only be handled by a general contractor or construction manager under contract.
@zipfelquatsch
You can inquire without obligation about what fits within your income. The house can then be planned accordingly, after subtracting landscaping and additional construction costs from your budget.
zipfelklatsch schrieb:
That’s exactly my question! We still don’t know where we’ll end up with the house. I’m thinking around 250,000!
But the bank probably wants something more concrete right away, doesn’t it, regarding construction financing?Well, that price is definitely ambitious. Better plan for 50,000 more, and at first, your garden will probably just be a pile of sand.
Go to your main bank and one or two brokers. Just call them and give an update on where you stand; they know you’re not building a new house every few months. Get some offers and then post them here again so a few people can take a look.
By the way, we went to the bank almost two years before starting construction to discuss what was possible and which options were viable. Once things got more concrete, we had another two or three appointments to finalize everything.
Z
zipfelklatsch28 Aug 2019 06:54danixf schrieb:
Well, the price is definitely ambitious. Better plan for an extra 50,000 and for now, you’ll only have a pile of sand in the garden.
Go to your main bank and one or two loan brokers. Just call them and explain where you stand— they know you’re not building a house every few months. Get some offers and post them here so a few people can take a look.
By the way, we visited the bank about two years before construction started to discuss what was possible and which options were available. When things got more concrete, we had 2–3 more appointments to finalize everything. We already know which bank we want to go with since several acquaintances have had positive experiences there, including regarding the loan terms.
We’re not exactly sure how much equity we will put in. Definitely 30,000.
How much should we plan for additional construction costs? Around 20,000–30,000 as well?
What might cause issues with the bank, and what we’re unsure about, is our income. The land is already secured and paid for. I’m still studying but my partner is a civil servant.
As a precaution, my parents could act as guarantors with other properties they own.
We’re not completely sure whether the bank will approve us for the mortgage because of this.
What do you think?
zipfelklatsch schrieb:
We already know which bank we want to go with, based on several acquaintances who had positive experiences there, especially regarding terms. No, please make sure to get comparison offers at least through a broker.
zipfelklatsch schrieb:
We are not yet sure how much equity we will put in. At least 30,000.
How much should you plan for additional construction costs? Also 20,000–30,000? 30,000 would be the absolute minimum. It depends strongly on the plot of land. Have a look here at the list of additional construction costs.
Why plan a house if you don’t know whether you will get a loan for it?
Go to the bank first to find out your potential financing range, and then plan your budgets accordingly. It doesn’t make sense to design your dream house first and later find out you’re short by 50,000 on the loan.
(By the way: is it just me, or does the summer slump seem to be filled with strange finance-related inquiries?)
Go to the bank first to find out your potential financing range, and then plan your budgets accordingly. It doesn’t make sense to design your dream house first and later find out you’re short by 50,000 on the loan.
(By the way: is it just me, or does the summer slump seem to be filled with strange finance-related inquiries?)