The banks need certain documents from the future property owners. These documents include proof of income and data about the property to be purchased such as the purchase price, floor plans, possibly a land register or a location description. On the basis of this information, the bank then makes a non-binding financing offer to the interested party. These financing offers then make it clear how much money the bank can lend to the interested party, what are the monthly installments, at which interest rate is the loan repaid and with which debit interest payment.
The first non-binding offers from financial institutions are purely legal, mostly financing proposals. Colloquially, they are also called financing offers. While an offer is actually legally binding, a proposal or estimate is always non-binding. However, offers often have the addition “non-binding”. This addition then makes sure that the legal term for an offer is non-binding.
Why compare financing offers?
Admittedly, the way to the good old house bank is really the easiest and the most comfortable. You probably know your house bank for many years and appreciate the cooperation with her. When it comes to your checking account, that’s absolutely right. And even with such a large investment as a property, the house bank for many is probably always the first point of contact.
But the house bank is not always the best choice for Payday lending. Just because you are a longtime customer, you do not automatically get the best and most favorable conditions on the market. Whether your home bank’s financing proposals are good, you only recognize if you compare them with the financing offers of other providers.
For this it is important to know that not only the annual percentage rate is crucial for a favorable offer. Of course, you want to finance your home first and foremost as cheaply as possible. However, Payday lending should be holistically geared to your individual financial needs. This means that other contract and financing components can be important and favorable for you:
- Installment and loan amount
Each bank has different Payday lending policies. This goes hand in hand with the fact that even the maximum loan amount you would get varies from bank to bank. Moreover, according to a budgetary statement, banks usually set a lump sum of around 35 percent of net household income as a monthly installment. However, how flexible the banks are in the final rate setting is also very different. Different financing offers from multiple providers provide a comprehensive insight into your financial options.
If you are expecting larger sums of money that you would like to invest in Payday lending, then a (best for free) special repayment option is probably important to you. Many banks allow home builders special redemptions only to a small extent and with additional costs. If you compare financing offers, you can balance these options from different providers and ultimately save money.
- Flexible and customizable eradication
Payday lending lasts between 15 and 35 years until full repayment , depending on the amount and type of Payday lending. A lot can change during this time. Your job or family situation may change, and you may suddenly want to pay a higher installment or you may want to reduce it. For such eventualities, a customizable, flexible repayment amount is very useful. For some providers it is possible to adjust the repayment rate for free during the term.
- Provisioning-free time
If you want to build a house, then the Payday lending will probably be paid in installments depending on the stage of construction. However, the bank will provide the full amount you need throughout the entire construction period. And you can pay for it – with the so-called commitment rates . Since a building can be delayed by a few months, a time as long as possible to freeze interest in this case is important. Again, it is worth comparing the financing offers.
- Non acceptance conditions
Also important for future builders are the conditions if you do not need the entire loan amount. Normally, a non-acceptance fee is payable if you do not fully exploit the Payday lending. Because the bank escapes through the night check interest income and it can be compensated. Some banks offer a flexible partial amount for real estate financing , which usually accounts for five to ten percent of the loan amount. Whether you claim this flexible sum or not then creates no extra costs.
- Variable interest and term
You may also be offered a variable loan for you. With this type of Payday lending, the interest rate changes every three months, adjusted to the so-called EURIBOR. This means that there is no long interest rate and you can usually repay the loan completely flexible and at any time. As the interest rate adjusts, it can become very high. A variable loan is therefore risky. The conditions for flexible loans are very different. Again, it is worth comparing a number of financing offers again. Whether such a loan is suitable for you should definitely be evaluated in a personal consultation.
- termination conditions
You can always cancel Payday lending after ten years, which is regulated by law. Before that, it is only possible under very specific conditions and presumably with a prepayment penalty . You can only find out how strictly the banks regulate terminations outside of the legal deadlines by comparing different financing offers.
- Service and consulting services
If you want specific services from your Payday lender, such as a 24-hour hotline or similar, you probably will not fail to compare multiple vendors and their financing offerings. Because not only the contract conditions, but also the services outside the contract vary greatly.
Bank is not equal to bank and Payday lending is not equal to Payday lending. You have many options and options in real estate financing to get the right and cheapest loan for you. You probably will never get a full market overview, the market is simply too big, but if you compare as many financing options as possible, your chances of getting a cheap real estate loan are very good.
How can I compare financing offers?
As you can see, cheap Payday lending is not just the interest rate. Comparison is important. But what is the best way for you to get as much insight as possible about Payday lending? In principle, you have three options:
- Personal bank comparison : You can, for example, make appointments at various banks on your own and thus gain an impression of the providers in your regional environment. This has the advantage that you can be personally advised by a bank employee and ask questions.
However, this type of funding offers to catch up and compare, time-consuming and low-yielding. Would you really have the time (can) to compare ten different providers in this way alone? And so to take ten, probably several hours of consulting appointments at ten different banks and ten different employees?
- Online Comparison Portals : Clearly less time is needed to compare financing proposals on the Internet. From the comfort of your own sofa, you can look around on the comparison portals and compare hundreds of providers. The overview is much larger than the classic, personal bank comparison.
But: Here you have the choice but still far from the advice that is advisable in such a large and long-term investment. As you know, it does not just depend on the interest rate. And who explains the details of the non-binding financing offers and answers you questions? Probably at most one employee on the phone who may help you for the moment and then hangs up again.
A detailed consultation looks in our eyes a bit different. No question that such portals are great for switching energy and communications providers, but when it comes to your financial future, may it be a bit more, is not it?
Lock offers rarely match reality
Many banks or online portals advertise with particularly low interest rates. That is also understandable. However, these offers are idealized and non-binding offers that you can not always rely on. To give someone a concrete financing offer, the bank needs individual information. As a rule, as soon as the bank reviews specific data and makes individual financing offers, the interest rates are significantly higher than in the advertising pledge.
- Financial intermediaries : Financial intermediaries as well as Dr. med. Small is one, the advantages of the classical consultation talk with the bank with the supplier variety of comparison portals in the Internet. Our Payday specialists would like to get to know you and determine in a free consultation, which financial needs you are aiming for a Payday and which options make sense for you. How much do you want and, above all, how much can your monthly installment be paid off and how much house can you afford?
We need to know all this in order to offer you the best and cheapest financing offer for you. In our more than 60-year history, we can rely on the products of more than 400 banking partners and compare their financing offers for you.
When comparing financing offers, it is enormously important not to ask for a “financing request” but a “condition request”. Sounds similar in the first moment, but differs in one important detail. The request for financing will be noted in the SCHUFA. If you request a funding request from several providers at the same time, it may have a negative effect on your SCHUFA score and it will decrease. And then getting a binding loan commitment can be tough. After all, your creditworthiness has dropped by the requests in a short time visibly and that does not make a good impression on financial institutions.
Again, it becomes clear how important advice is. At Dr. Small we pay close attention to making condition requests. Only one single financing request will be made, if you have decided on a specific offer.
Count on it
If you would like to make a non-binding overview of the costs of buying a home or a building before the first consultation, you can try our free budget calculator. It shows you how much house you could afford on the basis of your household income and your own equity and what additional costs and how much you have to take into account.
In addition to our terms, our free-of-charge toll calculator also lists the interest that will accrue in the amount of your Payday lending and how long it will take for you to repay your loan in full.
loan amount Please indicate here which loan amount you need for the purchase, the new building or the follow-up financing. In the case of follow-up financing, this value corresponds to the amount of your remaining debt, which must be further financed. 190000 50,000 to 100,000 Nominal interest rate fixation in years Please choose how long your debit interest payment should last. This determines the period for which you want to set the offered interest rate or follow-up financing interest. 5 8th 10 12 15 20 25 30 Calculate personal interest and rate
Please note that the information in the calculators does not constitute financing offers. They are merely intended to give you a first impression of your potential Payday lending and financial capabilities. The calculators do not replace the consultation that we would recommend to you in the course of such a large investment and financial commitment as Payday lending.
Payday financing at favorable interest rates with personal advice
From the first idea to the final signature: Our nationwide more than 550 local consultants will accompany you with your Payday lending and will assist you with expert advice. They search out the offers of more than 400 reputable banking partners for you. Contact us and we’ll get back to you as soon as possible.