With a building loan, many customers hope for serious advice and a fair offer. Time and again it is found in tests and press that not every bank and not every consultant offers its customers this supposedly self-evident seriousness. In most cases, the focus is only on the bank’s interests. Very much to the detriment of the customer. We’ll show you how to recognize serious offers from dubious offers for your home loan.
Before you sign a construction loan, you first have to submit one or more offers from banks or consultants. But mostly cheating starts there. In order to recognize a serious loan offer for a property, the following points should be fulfilled.
10 points that a serious building loan should meet
The advice or offer should meet the following criteria:
The offer for a building loan should be made anonymously.
This means that you do not provide your name. As a result, your building loan offer is not evaluated as a loan application, but only as a loan request. A loan application is always reflected in your Schufa information and thus affects your credit rating. Even if you choose another provider.
Every building loan offer also includes a financing plan!
The financing plan is one of the most important documents for a building loan. This makes planning for a property purchase possible. Because the financing plan includes the loan term, the amount of the loan installments, the amount of the construction interest, a repayment plan, the fixed interest period, the start and end of the construction financing and all costs incurred. So you can quickly see how expensive the building loan really is!
All options for home ownership have been taken into account.
State-subsidized construction loans are often only minor accessories that the bank does not earn anything from. Therefore, not all possibilities for home ownership are offered. This can make the construction loan significantly more expensive. To make matters worse, some building loan consultants are not familiar with the regional funding programs of the respective federal state. To check whether all possible grants have been taken into account, you can inquire at KfW Bank for Reconstruction and at the local offices free of charge.
The bank should give them the option of making special repayments.
A special repayment makes sense. This shortens the building loan and saves building interest. An unexpected or planned money blessing could be used for an interim repayment.
The building loan should be paid by the time of retirement at the latest
The building loan should be paid until retirement age. Because the pension is usually much lower than the previous income. With a paid property at retirement age, you want to save the rent in order to compensate for the lower income and not continue to pay off a building loan.
The loan term should not be longer than 30 years!
Building loans with a term of over 30 years are dubious. Because you usually paid more in interest than you paid to the bank for your property.
No assignment clause should appear in the general terms and conditions of construction finance
If the terms and conditions contain an assignment clause, the bank is able to resell the loan agreement to investors. The bank can do this without giving reasons. Such loans are usually made immediately due for payment.
A consultation protocol after the contract is concluded is a must!
You can only protect yourself against wrong advice with a detailed advice protocol. It is therefore very important that you receive a consultation report immediately after the consultation. Furthermore, every important question from you or the answer and statements of the consultant should be documented in it. Make sure you pay attention. If there is trouble, such an advisory protocol can decide on right and wrong. Also check whether the advisory protocol can match your statements. Meets home finance requirements. Often only standard protocols are given here.
Have you been fully advised of the risks of mortgage lending?
Every financial advisor and every bank is legally obliged to inform you about the risks of mortgage lending. This obligation to provide information should also be recorded in the advisory protocol.
Have you been shown the costs of your building loan?
Often mogel banks in a legal framework with the costs of a building loan. Therefore insist on the disclosure of all costs incurred. These are usually not fully listed in the financing plan.
Are all points fulfilled? Then you are on the safe side for now. I wish you success.