Apply for a building loan

In this article, we would like to give you the most important tips and tricks to apply for the construction loan correctly and to successfully receive the construction financing in the end.

1. Check your credit rating

To find out ahead of time whether your application for a construction loan has a chance of success, you should first obtain a self-report from SCHUFA (here). This information provides information about your personal creditworthiness. In the SCHUFA file, for example, burst loans, difficulties with mobile phone contracts, canceled insurance policies and bank accounts, etc., are recorded. Registered.

If your SCHUFA file has such entries, your chances of getting a construction loan are poor. Only in the case of minor losses in creditworthiness, some lenders are still willing to provide financing – but often at significantly higher interest rates.

2. The right amount of construction loan

Usually financing banks only 60% to 80% of the actual purchase price for a property. The reason for this is a so-called safety discount, which is made by the credit institution. In the event of seizure and liquidation of the property, the bank can thus almost certainly recover the cost of the loan granted.

For this reason, it is very important to set the right amount for the construction loan before applying for it. Financing at 100 percent or even more is also possible, but usually only for a considerable interest surcharge. Optimally it is thus, if 20 to 40 per cent own capital funds are brought along into the financing.

3. The correct bereitstellungszeit select

If the application for a construction loan is approved, the bank then provides the loan. As a rule, this provision is free of charge for a period of up to six months. If the credit must be made available longer, appropriate bereitstellungszinsen result for it with most banks. It is therefore very important to apply for the loan as soon as possible before using it or to negotiate with the bank an appropriately long provision period for which no interest is charged.

4. Take advantage of funding opportunities

In the meantime, there is a whole range of different ways to promote the acquisition of home ownership. Most of the subsidies have to be applied for through the bank that provides the construction loan. But not every bank provides this service in principle and free of charge. Make sure therefore to specify already in the credit request that the desired construction financing is supplemented by appropriate support measures and these support measures are requested by the bank.

5. Avoid cession clause

Many loan agreements today are concluded with a so-called assignment clause. Thus the bank legitimizes itself to be able to sell the complete loan also without your agreement to a third party. Banks use this option to sell current loans to investors, for example, and thus generate profits. For the borrower, however, such machinations are extremely unpleasant and involve a great risk. If you apply for a construction loan, you should therefore make sure that there is no such assignment clause in the loan application.

Make an effort when applying for the construction loan

There are small but important points that should be considered when applying for a construction loan. These points serve on the one hand to receive in the end the really most favorable building loan, increase however also the security for the borrower. They should sign therefore in no case a building loan application, if one of the conditions specified here are not fulfilled.