Real estate loan – a comparison

Real estate credit? Who does not dream of a house or apartment in the countryside? Although in germany most people live for rent dream of their own property. But why is that? Often germans think that a loan for a house or an apartment are too expensive. But if you see the current low interest rates, financing is already quite realistic.

By the low interest one pays off more repayment than interest and is thus faster finished with the financing than still some years ago. And anyway you should take your time with the financing anyway. It does not matter, if you are not too old yet, whether one pays off the loan for 10, 15 or 20 years. It is always important that the rates fit. What is the use of a short term if then there is no money left for life?

Calculate, nevertheless, once how much rent you pay in 20 years or have already paid! You will be amazed at the enormous amount of money that can be raised. And after 20 years of paying rent, you still have "nothing". If you had rather put the money into a real estate, this would perhaps already belong to you completely. That sounds great, or?

Why do you need this real estate loan?

If you want to buy a house or an apartment, and you do not have the necessary small change, then to finance your desire you need a real estate loan. This can be used for an existing object, or of course also for an old object.

What does a real estate loan cost??

The cost of real estate varies greatly, of course. Just look for properties in your area and then compare the different providers. In the following we provide you with different providers and their offers. Just play around with this real estate loan calculator. You'll be amazed at the differences between different banks and a few percent interest rate.

How much house can I afford?

Unfortunately, the actual house or apartment price is not enough on its own. Often there are also brokerage costs, which can be really expensive with up to 7.14 percent. As an example for an apartment with a purchase price of 300.000 euros are theoretically 21.420 euro due. And already the property costs 321.420 euros.

Further, there are also real estate transfer taxes, which vary by state. And let's not forget notary fees incl. The costs for all entries.

If a request immediately my schufa goes bad?

Schufa – queries are always a delicate matter. But in the meantime, some things have also been changed at schufa. Be sure to always make a financing condition inquiry first. This is stored in your schufa, but not displayed to others. Only when you make a real request for funding, this will be registered.

In principle, such entries are also not dangerous, but: would you give credit to someone if he has already asked 4-5 others and was always rejected? And exactly in such a way thinks also the 5te bank.

How much money the bank will lend me to buy a house?

Of course this depends on many factors. For example, how much you earn and have at your disposal each month. The further is of course also your schufa score. If this is good and your monthly income accordingly, your credit rating is already correct.

Furthermore, of course, some equity must be available. How much this must be, is always dependent on the next point.

Extremely important for the banks nowadays is: the value of the property. And this is valued differently by lenders than, for example, the actual market is worth. For example, the bank will only appraise a property up to a certain size. Anything more you have in property doesn't matter to the bank for appraisal purposes on a real estate loan.

Likewise, the bank evaluates any renovations that are older than 15 years and do not include a complete core renovation, quite differently from how they actually correspond to value preservation and value appreciation.

Therefore, promptly have the bank you trust evaluate the property so you know how much equity will be needed.

What to look for in a real estate loan?

The most important thing: the right property. This must suit them properly without bellyache and compromise. After all, you are committing yourself to this real estate for a few years.

And, of course, a good feeling and transparency also apply when choosing a bank. Use the free loan calculator at the top of the page to get the right feel.

Where to find real estate loan experiences?

The financial manager recommends that once you have found the right property and the financing to match, you still look for the experiences of other borrowers online.