Every year many people fulfill their dream of owning their own home or flat. The loan offers are currently very attractive and certainly many of you are thinking about getting your own real estate as well. I have summarized some useful tips for you that can certainly be very helpful.
The equity ratio is very important
The more money I can raise for myself, the less money I need from the bank. This simple rule should always be considered, even if there are times when the loans are very cheap. This is called an equity ratio of 20 to 30% . So if I need for the financing of the property 300,000 euros, so equity would be appropriate from 60,000 euros to 90,000 euros, the bank is then only needed a loan in the amount of 210,000 euros to 240,000 euros. One should also stick to this rule. Why? Because this has several advantages. Not only do you need significantly less money from the bank, which makes the monthly repayment significantly lower, even the lengthy financial burden is lower. So it makes a significant difference whether your own home or your own home is paid off at the age of 50 or only at the age of 60.
What about the complete debt financing?
Meanwhile, more and more banks offer the full financing for the purchase of a property. No equity is required here and the required credit is 100% financed by the bank. Of course, this has the great advantage that you do not have to save years and can fulfill the dream of home faster. However, a secure fixed income is the prerequisite and higher interest rates must be accepted.
Stay realistic on financing
Several times I have reported here on the blog about the financing of a property, while I stressed again and again that you should remain realistic in the financing. Of course, when planning your own property, you are obviously very euphoric and you are encouraged to buy and finance everything, but you should still try to stay on the carpet and think ahead.
Questions you can ask yourself:
- Do you really need a house with 200 m² of living space? Are 150 m² not completely sufficient?
- Do I really need two large garages?
- Does it really have to be this house or are there not even better cheaper alternatives?
Such simple questions have the great advantage that the required mortgage financing is much lower. Especially as you could search for more savings, so there is the article, “save money when building a home” further useful tips.
Further plus points for the positive mortgage lending
At baufinanzierungen.com I became aware of an interesting article, where the personal requirements are addressed, which significantly improve the potential for mortgage lending. There is, inter alia, the permanent employment contract which brings enormous benefits. Which is understandable, since such a regular income already exists for years and gives the bank an additional guarantee that the borrowed money is also repaid. Furthermore, a positive Schufa score provides another important clue to the awarding of the loan. It is so easy for the lender to understand whether loans or other liabilities have already been repaid or still to be repaid.
If you want to fulfill the dream of having your own house or your own condominium, you can not afford to get a loan from a bank in most cases. Since this is not a small amount of money, so it is highly recommended to find the right financing for themselves, in advance to inform exactly and thoroughly calculate everything, because after all, the house or apartment is financed over a very long period.