Your own four walls are high on many people’s list of great desires that you want to fulfill in life. A little house in the green, preferably with a small garden for women, children, and dogs, the birds chirp in between, and in summer parents-in-law, friends and acquaintances come by for a barbecue.
It could look like this, the perfect idyll at the gates of the big city, and in fact, it is not so difficult to make this dream of dreams come true.
The keyword is “construction finance” because with solid and well-thought-out home loan, getting into your own home is much easier than some tenants would like to assume.
Favorable interest rates do the rest because time and again you read in the relevant media that building money has never been as cheap as it is now. So what needs to be done so that the dream of owning a home is not a dream? How much house is there currently for the euro?
Home loan – the first step: good planning
At the beginning of every house financing, the crucial question is how much property you can afford. If possible, the rate for the loan should not be significantly higher than the current rent, an online calculator on the Internet gives this rate a first indication of how high the purchase price may be.
In addition, of course, there are additional purchase costs, which consist of notary and court costs, real estate transfer tax and brokerage fees, provided the property is bought through a broker. If you have a rough indication of how high the purchase price may be, the best thing to do is to look for the new place to stay.
The basis: solid house financing
The key point of every house purchase is a well-thought-out and long-term sustainable real estate financing. It must take into account the borrower’s financial options and fit into his available budget.
Of course, the current low-interest-rate level means that building money is fairly cheap at all banks, but the interest rate alone is not the decisive criterion.
An offer for home loan must take further details into account so that a comprehensive comparison is possible. You can compare offers with the help of the contact form.
Info: These details are part of the offer
The key dates on offer for any home loan include:
- the committed borrowing rate
- the effective interest rate
- the initial repayment
- the length of the rate fixation
- the remaining debt at the end of the fixed interest period
- Special repayment agreements.
This is the only way to make an offer comparable.
The crux of the matter: equity
As much equity as possible should be invested in each financing so that the loan remains manageable. It may be 20 to 30 percent of the purchase price, in particular, the additional purchase costs should be paid by the buyer.
The higher the equity, the lower the mortgage lending and the lower the interest rate and the lower the costs.
The thing about full financing
Again and again one reads of cheap offers for full financing without equity. They want to enable young families to find their own way home.
Nevertheless, the interest increases with the loan on the property, and finally, the loan also wants to be repaid at some point. So the higher the equity, the cheaper the building money and the faster the loan will be repaid.
The path to credit – the most important things at a glance
- Any house financing must be sustainable in the long term
- The purchase price must fit the budget
- Every financing should be tailor-made
- The more equity, the lower the interest
- Before the contract is concluded, the conditions are compared
Perhaps you have already looked at a few suitable properties and are wondering how you should best deal with mortgage lending? Apply for a building loan from us today: simply fill out the form quickly and easily, we will get back to you immediately with a loan offer tailored to your needs