In today’s article, we will start directly with our example family. This has at least staked out the rough framework for their “project home”. It is clear that a single-family home is to be purchased, which costs about 200,000 euros (including ancillary labor costs). Financing is expected to be via a bank.
Now the question arises about which bank the property should be best financed. However, this can not be said so easily, since it depends entirely on the financing offers of the individual banks. The most important variables are presented below.
It depends on the conditions
Rough framework conditions
A typical real estate loan is required which is secured by land charges and whose fixed interest period is at least ten years.
Next condition component are the mortgage rates . Of course, this should be as attractive as possible. But especially here, the offers of the individual banks are very different. A targeted comparison is therefore highly recommended, because even the smallest interest rate differentials can mean a large savings or even considerable additional costs.
There are banks that have a little bit more to offer in mortgage lending because, for example, there is the possibility to exit the financing contract before expiry of the fixed interest period or because the repayment rate can be adjusted for free.
Direct banks are usually the better choice
Given these requirements, it is usually best to finance through a direct bank. Both in terms of interest rates and subtleties, these providers are at the top of the league. Quite often regional banks have lost interest rates, so it makes sense to bet on a direct financier. But even with the intricacies of the direct sellers to convince, in general, their real estate loans promise the most flexibility.
Clear case: First contact a construction loaner
However, because there are so many banks and it is almost impossible for the consumer to obtain so many financing offers, it is advisable to seek financing through a mortgage broker. We at Snark offer such a service: Our clients receive independent financing advice that not only optimizes financing, but also compares countless loan offers. This makes finding the right bank a breeze.