Hello dear forum,
We are about to finalize our financing.
However, it seems that the kitchen will likely not be accepted.
Is this different from bank to bank?
We would like to include it in the main loan.
What options are available? Are there any at all?
I hope you can help.
Best regards
Steffen
We are about to finalize our financing.
However, it seems that the kitchen will likely not be accepted.
Is this different from bank to bank?
We would like to include it in the main loan.
What options are available? Are there any at all?
I hope you can help.
Best regards
Steffen
dynaudio7925 Jul 2020 23:07nordanney schrieb:
That's exactly the point. You just don't understand it. With a 60 monthly installment, any bank would still lend you money for the kitchen.
As I said, it’s not about the loan-to-value ratio!
Your statement is simply incorrect if you say that every bank does this.
If that were true, we wouldn’t even have this issue.
It’s also not correct that leftover funds are just paid out to you. Usually, it’s only a percentage of the total loan amount. Certainly not large sums. If that were the case, this wouldn't be a problem either and we would be paying for the kitchen with those funds.
There are definitely banks where this applies, but their interest rates are probably through the roof.
No, that’s not what we want if the interest rate increases by 0.5% just because we need $25,000 (about 22,700 Euro) more for the kitchen.[/QUOTE]
dynaudio7925 Jul 2020 23:09tomtom79 schrieb:
I assume your bank says so, otherwise this problem wouldn’t exist.Then there would be several except for 3.
It’s not due to the loan underwriting. My financial advisor would tell me that, as he is a good acquaintance.
N
nordanney26 Jul 2020 00:12dynaudio79 schrieb:
As I said, it’s not about the loan-to-value ratio!
Your statement is simply wrong when you say that every bank does this.
If that were the case, we wouldn’t have this issue at all. Poor advice. I have been working in real estate financing for over 20 years, and your "problem" is a daily routine for us.
dynaudio79 schrieb:
The idea that leftover funds are just paid out is also not correct. Usually, it’s only a percentage of the total loan. Certainly not large sums. If that were the case, we wouldn’t have this topic and would be paying for the kitchen with it. Where does it say that in the standard contracts of banks? Not in those of around 900 banks. I know them all. However, I’m happy to be convinced by a professional—just give me the specific clauses.
dynaudio79 schrieb:
There are certainly banks where this is the case, but their interest rates are probably outrageously high. The interest rate depends on the loan-to-value ratio, not on the purpose of the loan (of course, factors like postal code, property type, etc., also play a role—but those are secondary).
As I already mentioned, it definitely works in the cooperative banking sector and at Deutsche Bank, provided the loan-to-value ratio is reasonable.
Why it doesn’t work with your bank, I don’t know—but the financing is probably simply maxed out.
dynaudio7926 Jul 2020 00:54So you clearly state that my issue with the kitchen must be solely due to an excessive loan-to-value ratio and not because the bank considers the kitchen as a non-essential part of the property?
The financing is not fully utilized. There is still room available. So it’s not because of that. If it were, then there wouldn’t be any lenders without this problem. Such lenders do exist but are unattractive in terms of interest rates.
The financing is not fully utilized. There is still room available. So it’s not because of that. If it were, then there wouldn’t be any lenders without this problem. Such lenders do exist but are unattractive in terms of interest rates.
If a bank or lender handles financing for house construction, home purchase, or other real estate matters as it should, a kitchen is not included, since construction loans do not cover furniture. Also, down payments or refinancing for additional consumer loans are generally not part of the arrangement.
There is usually no need for discussion on this point. If a bank finances extra consumer spending, it is not necessarily a matter of luck. The more credit offered, the more problems often arise later during repayment, especially when borrowers take full advantage of the available funds.
However, some people even feel privileged the more money they are offered.
The rule still applies: the lower the loan amount, the better the sleep.
There is usually no need for discussion on this point. If a bank finances extra consumer spending, it is not necessarily a matter of luck. The more credit offered, the more problems often arise later during repayment, especially when borrowers take full advantage of the available funds.
However, some people even feel privileged the more money they are offered.
The rule still applies: the lower the loan amount, the better the sleep.
H
HilfeHilfe26 Jul 2020 05:50dynaudio79 schrieb:
So you’re saying plainly that my kitchen issue must be due to a too high mortgage loan amount and not because the bank considers a kitchen as not part of the property?
The financing is not maxed out. There is still room. So it’s not because of that. If it were, there wouldn’t be any banks without this problem. Such banks exist, but their interest rates are unattractive.Then just share the key details and the rates you receive.