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?
H
HilfeHilfe
27 Aug 2019 21:52
Well, people naturally have certain expectations regarding the price.
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nordanney
27 Aug 2019 21:53
WingVII schrieb:

You need the building permit / planning permission for the mortgage.
For what? Many don’t have it yet.
Z
zipfelklatsch
27 Aug 2019 21:58
I will wait for the quote first and then discuss everything else regarding equity, etc... I already have the plot of land. Is this also well received by the bank?
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WingVII
27 Aug 2019 22:15
nordanney schrieb:

For what? Many still don’t have that.
The financial advisors I’ve been in contact with so far all advised against signing before obtaining the approval. I have paid for the plot and everything myself up to now. Not sure if that makes a difference.
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WingVII
27 Aug 2019 22:21
Pamiko schrieb:

The building permit/planning permission usually needs to be submitted later. It is not common practice that the loan agreement can only be signed after obtaining the building permit/planning permission. Otherwise, no payments could be made to the general contractor until then, but almost all payment schedules require a payment beforehand.

That might actually be the case for you. However, it is definitely not the standard procedure.
Well, I’m not even 100% sure if I will get the permit at all.
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nordanney
27 Aug 2019 22:39
WingVII schrieb:

The financial advisors I've contacted so far have all advised against signing before the permit is approved.
That's a different matter. The bank approves without any issues. If you sign and don't get the building permit / planning permission, it's your problem, not the bank's.