ᐅ House Building Planning Process! When Should You Schedule an Appointment with the Bank?

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?

I don’t know what your income is, but don’t you usually ask the bank how much they will lend you before you start planning? Or do you have so much money that it doesn’t matter?

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 will probably want something concrete right away, won't they, for the purpose of construction financing?

Now the bank basically tells you the amount you can afford! Then you can start planning. And once you have approximate figures from the general contractor or architect, you can proceed further.

You need the building permit / planning permission for the mortgage loan. That’s currently where I’m stuck. Once you have it, I would take care of it if I were you. Provided you are sure that you can secure the necessary funds based on your financial situation.

WingVII schrieb:

You need the building permit / planning permission for the mortgage loan. That’s currently where I'm stuck. Once you have it, I would take care of it if I were you, provided you are sure you will get the necessary funds based on your financial situation.

Issues with the building permit are usually resolved later. Normally, the loan agreement is not delayed until after receiving the building permit / planning permission. Otherwise, no payments could be made to the general contractor until then, and in almost every payment schedule a payment is due beforehand.

It might actually be the case for you, but that’s definitely not the standard procedure.