ᐅ Financing Your Own Home – Is Getting Started the Hardest Part?

Hello,

we live in Gotha, Thuringia, and would like to have our own house. My wife and I are 30 years old, and our children are 1 and 3 years old.
I earn about 54,000 euros per year, my wife currently has a mini-job and is looking for a part-time position that would bring in around 700-800 euros per month.
We have very little equity, about 10,000 euros, and maybe a few thousand more will come in over the next few years. However, a large part of that would probably go towards moving costs, the kitchen, etc., so we can’t really count on it for financing. Additionally, we have Riester contracts with a total balance of about 15,000 euros, into which we pay a combined 2,500 euros annually including allowances.
In an initial consultation at the Sparkasse bank, they said we could get up to 200,000 euros in financing.
After reading a bit here, I believe that won’t be enough. So new builds are probably out of the question, as with two small children, a lot of personal labor isn’t really feasible, and we are not professional DIYers.
Over the last two months, we've hardly found any suitable used houses. Of course, compromises have to be made, but it still needs to be to our liking...
What do you think? How can we proceed?
We were thinking about a 5-room house with about 140 m² (1,500 sq ft). Tall windows would be great, otherwise it doesn’t need to be anything special.