How do I finance my own home correctly?? Even if you want to do it yourself and will take a lot of what is necessary for your perfect home into your own hands: an all-round secure financing is simply a must if you want to build a house – whether completely new or as an extension.
How do I finance a house – seven tips + 1
Financing a new house or even extending the house you already live in to suit your needs. No matter how you look at it, it costs a lot of money. But it is precisely for such investments that the financial resources are often lacking.
Of course, it would be best if you can fall back on savings or other financial reserves as an answer to the question of how to finance your house. But often this is not possible and you have to finance the house through loans and grants.
Even with a sophisticated financing of a house, you can make various mistakes that will cost you dearly afterwards.
Therefore no way leads around the fact that you have the most important key points in the back of the head and check and/or. Take into account when planning from the front. We provide tips and tricks for secure real estate financing.
Tip 1: short term for a real estate loan
Especially when interest rates are high, you should go for a short duration. If the interest rate is reduced, you can thus switch to a real estate loan with more favorable conditions after the contract expires. Alternatively, a loan variant can be chosen, which allows the borrower to make a free switch for more favorable loan conditions.
Tip 2: consider repayment in the loan agreement
If interest rates are low, arrange for a higher repayment rate. Thus, the loan is repaid faster and the remaining debt for refinancing turns out so cheaper. The total cost of borrowing is also much lower this way.
Tip 3: watch variable interest rates
How to finance a house properly ?
In the market, interest rates rise and fall daily. If you choose a real estate loan with variable interest rates, you always have in mind that the interest rates can change every day.
Especially when interest rates fall, banks do not always react immediately. Don't be afraid to check with your bank more often when you know interest rates are dropping. Watch the market daily!
Tip 4: agree on a constant loan rate
If possible, agree on a constant loan installment. So you can always count on the same financial expenses. Often a financial situation can change quickly due to a divorce or loss of work – make sure the loan rate is manageable in all circumstances to avoid debt.
Tip 5: disagio – do without an interest prepayment
Due to the disagio, the nominal interest rate can drop, but at the end of the term the residual debt may even be higher than before. Since 01.01.In 1999, the discount may also no longer be tax deductible, making the interest prepayment no longer worthwhile.
Tip 6: claim subsidies
Keep in mind that there are different ways to get funding in different states. Find out the best way to do this at your bank.
Try not to include the subsidies in the loans, even though they are available. At the end of 8 years in most cases, the grant funds are dropped and the financial burden increases again, which can leave you facing financial difficulties. Rather, count the grant money as a reserve for certain repairs or other unanticipated costs. Subsidies can also be used, for example, for unscheduled repayment of the loan amount in order to be debt-free sooner.
Tip 7: plan your construction progress
Plan the construction progress of the house very precisely. This can prevent unnecessary elapsed days – after all, it often takes a few days for the loan to be disbursed, which unnecessarily increases interest costs for you. Discuss very carefully when, for example, the roof or basement will be completed to avoid delays in payment.
Additional tip: use a loan calculator for real estate financing
Many banks have loans with expensive terms – after all, rent, employees, and other things have to be paid, too. Nowadays, there are much cheaper ways to get a loan. Many lenders resp. Banks on the internet offer real estate financing at favorable conditions.
To find out which provider offers the best possible conditions for you, it is best to use a credit comparison. Our tip: our friends from kreditvergleichonline.De are trying to bring transparency to the market with a new credit comparison concept.
There, you simply enter your loan amount, term and monthly payment and you will be presented with a result of all borrowers who fit your conditions. In addition, you can see at first glance which interest rates are the most favorable for you.
If you have decided on a lender, you can get a non-binding offer directly from the bank or credit broker for a loan. After that, you usually have 14 days to think about accepting or rejecting the loan.