How should we prepare for banking

On the way to your home loan, there is at least one loan interview, either with an intermediary or the lender. It is best to think about it in advance and prepare documents. On our checklist you can see which topics you have to deal with.

What can I expect in the financing meeting?

Because building loans usually involve very high sums, the bank or financial intermediary would like to get to know you. At your consultation appointment, you present your financing project and explain your financial situation. These general conditions determine whether you can get a loan and, if so, under what conditions.

Conversely, you can use the interview for credit advice to learn the basics and useful tips on real estate financing. The better you prepare, the more targeted you can ask your questions. The more specific your ideas are, what demands and wishes you have on your loan, the more likely you will get the best possible mortgage.

The currently 5 cheapest offers for mortgage lending
Loan amount: € 200,000, property value: € 350,000, fixed interest rate: 10 years, repayment: 2%, zip code: 34295
Providerff. Annual interest monthly rate
The conditions on which the calculation is based reflect the current top interest rate with a fixed borrowing rate of 10 years and were determined on the basis of the following assumptions:
During the fixed interest rate:

Effective annual interest rate p.a.: 0.72%

Fixed borrowing rate p.a.: 0.69%

Initial repayment p.a.: 2.00%

Lending period: 57.00%

Property value: € 350,000.00

Net loan amount: € 200,000.00

Interest costs: € 12,937.79

Monthly installment: € 453.33

Remaining debt: € 158,538.19

If the interest rate remains the same:

Total term: 42 years and 9 months

Number of installments: 513

Total amount: € 232,391.89

The property is bought, owner-occupied and, with a first-rate land charge, serves as security for the financing. The borrowers are permanent employees with impeccable income and financial circumstances. In addition, there are costs in connection with the provision of the securities (e.g. notary costs for the establishment of land charges, costs for the land registry) as well as for building insurance.
The conditions on which the calculation is based reflect the current top interest rate with a fixed borrowing rate of 10 years and were determined on the basis of the following assumptions:
During the fixed interest rate:

Effective annual interest rate p.a.: 0.71%

Fixed borrowing rate p.a.: 70%

Initial repayment p.a.: 2.00%

Lending period: 57.00%

Property value: € 350,000.00

Net loan amount: € 200,000.00

Interest costs: € 12,758.52

Monthly installment: € 451.67

Remaining debt: € 158,558.12

If the interest rate remains the same:

Total term: 42 years and 10 months

Number of installments: 514

Total amount: € 231,984.63

The property is bought, owner-occupied and, with a first-rate land charge, serves as security for the financing. The borrowers are permanent employees with impeccable income and financial circumstances. In addition, there are costs in connection with the provision of the securities (e.g. notary costs for the establishment of land charges, costs for the land registry) as well as for building insurance.
The conditions on which the calculation is based reflect the current top interest rate with a fixed borrowing rate of 10 years and were determined on the basis of the following assumptions:
During the fixed interest rate:

Effective annual interest rate p.a.: 0.72%

Fixed borrowing rate p.a.: 0.71%

Initial repayment p.a.: 2.00%

Lending period: 57.00%

Property value: € 350,000.00

Net loan amount: € 200,000.00

Interest costs: € 12,937.79

Monthly installment: € 453.33

Remaining debt: € 158,538.19

If the interest rate remains the same:

Total term: 42 years and 9 months

Number of installments: 513

Total amount: € 232,391.89

The property is bought, owner-occupied and, with a first-rate land charge, serves as security for the financing. The borrowers are permanent employees with impeccable income and financial circumstances. In addition, there are costs in connection with the provision of the securities (e.g. notary costs for the establishment of land charges, costs for the land registry) as well as for building insurance.
The conditions on which the calculation is based reflect the current top interest rate with a fixed borrowing rate of 10 years and were determined on the basis of the following assumptions:
During the fixed interest rate:

APR p.a.: 0.86%

Fixed borrowing rate p.a.: 0.85%

Initial repayment p.a.: 2.00%

Lending period: 57.00%

Property value: € 350,000.00

Net loan amount: € 200,000.00

Interest costs: € 15,445.25

Monthly installment: € 476.67

Remaining debt: € 158,244.85

If the interest rate remains the same:

Total term: 41 years and 8 months

Number of installments: 500

Total amount: € 237,980.36

The property is bought, owner-occupied and, with a first-rate land charge, serves as security for the financing. The borrowers are permanent employees with impeccable income and financial circumstances. In addition, there are costs in connection with the provision of the securities (e.g. notary costs for the establishment of land charges, costs for the land registry) as well as for building insurance.
The conditions on which the calculation is based reflect the current top interest rate with a fixed borrowing rate of 10 years and were determined on the basis of the following assumptions:
During the fixed interest rate:

Effective annual interest rate p.a.: 0.96%

Fixed borrowing rate p.a.: 0.93%

Initial repayment p.a.: 2.00%

Lending period: 57.00%

Property value: € 350,000.00

Net loan amount: € 200,000.00

Interest costs: € 17,234.75

Monthly installment: € 493.33

Remaining debt: € 158,035.15

If the interest rate remains the same:

Total term: 40 years and 11 months

Number of installments: 491

Total amount: € 241,856.63

The property is bought, owner-occupied and, with a first-rate land charge, serves as security for the financing. The borrowers are permanent employees with impeccable income and financial circumstances. In addition, there are costs in connection with the provision of the securities (e.g. notary costs for the establishment of land charges, costs for the land registry) as well as for building insurance.

Before the bank meeting: Draw up a financial plan

Whether and which loan you get for your mortgage loan depends largely on your financial situation. Be prepared to have your accounts and bills completely screened, even if that may be a strange feeling. It is best to make the effort in advance and draw up a detailed financial plan - this step will come to you anyway. This gives you a first impression of which repayment installment suits you. To do this, proceed as follows:

On the income side, note the following monthly receipts:

  • Income from your employment
  • Income from self-employed work
  • Income from capital
  • other income (e.g. pension, agriculture and forestry)
  • Cold rent from existing properties
  • Child benefit
  • Parental allowance
  • Additional earnings (e.g. 450 € jobs)
  • Other (e.g. maintenance payments, accident pensions, etc.)

On the expenditure side, note the following monthly items:

  • existing building society loans
  • existing installment loans
  • Leasing rates
  • Communication (internet, (mobile) telephone)
  • Cost of living
  • GEZ
  • Motor vehicle expenses (tax and insurance)
  • Insurance
  • Alimony payments
  • Private health insurance
  • remaining rental expenses (after financing)

Also make a note of the sums of capital and liabilities available. Simply bring this information with you to your financing meeting. Your advisor will then discuss with you what your home financing could look like.

If you want to answer the basic question, "How much house can I afford?" From the start, you will find an answer to the maximum loan amount in our budget calculator.

The more money you have available each month, the more likely the bank will plan your mortgage with you. If you can, reduce your monthly fixed costs before the financing meeting, for example by repaying existing installment loans.

Collect your documents before the financing meeting

You must be able to provide documentation to prove your financial situation as well as the key data of the property that you want to buy or build. There are no standardized specifications as to which documents and documents you need for a mortgage loan; these requirements are determined by the various credit institutions themselves. It is best to ask your advisor before your loan interview which documents you need to present in the original or as a copy.

Preparation for the loan interview: You will need these documents

  • Identity card / passport of all persons involved in the loan
  • For employees: income statements for the last 2-3 months and the last income tax assessment
  • For the self-employed: the most recent balance sheets including the income / surplus account for the last 2 years and the last two income tax assessments
  • Proof of equity
  • Consequences of Divorce Agreement / Maintenance Payment Agreement (if applicable)
  • Pension information on statutory, company and private pensions (if you are older than 55 years)

To the object:

  • Current extract from the land register or power of attorney from the current owner to procure
  • Current land map
  • Calculation of the living and usable area
  • Floor plan drawings

For new buildings:

When buying: 

  • Expose
  • Draft sales contract (if already available)
  • In the case of heritable building rights: copy of the heritable building right contract as well as proof of the ground rent currently to be paid

Prepare the content for the bank interview

Whether you prepare the content of the consultation on building finance is a matter of type. In principle, you can go to your appointment as an absolute layman - your advisor will explain important terms such as repayment plan, annuity loan and mortgage lending value and give you tips on funding options such as KfW funding or child benefit.

Nevertheless, we advise you to be prepared for the financing meeting. For example, on our article pages you will find a lot of information on financing options and interest rate developments. Do you have friends and acquaintances who have already taken out a home loan? Great, ask them! The better you know about interest rates, fixed interest rates and repayment modalities, the sooner you can use the conversation to talk about specific conditions.

Tip: With our finance calculators such as the home loan calculator, budget calculator and loan and repayment calculator, you can play with the various parameters and see what direct influence values ​​such as the effective interest rate and repayment rate have on your home loan.

Bring comparison offers with you in the loan interview

The better you know the home finance market, the smarter you can negotiate. Do you want to finance your house and are you looking for an optimal offer? We generally recommend that you submit at least three inquiries to different financing partners. If you have specific offers from competitors, you are in a better negotiating position in the financing discussion. The person you are talking to may be willing to agree to the terms and conditions.

You can easily find comparison offers via our mortgage comparison.

Clarify important questions before the loan advice

Before you go into the financing meeting, you should be clear about what you expect from your loan. Your advisor will definitely ask you about the following points, which you should think about at home:

The consultant could ask you these questions during the financing meeting

  • How high should your monthly repayment installment be? (You can find useful background information on our Repayment page to determine the rate.)
  • How long do you want to fix the interest rate? (In times of low interest rates, we recommend a fixed interest rate as long as possible. We explain current building interest rates and their development on the page Current building interest rates.)
  • How much equity can you bring in?
  • By when do you want to have paid off the property?
  • Do you have to budget for modernization or renovation costs? (You can read about the costs of a modernization on the Modernization page.)
  • How flexible should your financing be? For example, are there any possible changes in your life during the planned term?

Our tip for home financing: Bring all your wishes to the table. What can then actually be realized can be clarified in a conversation.

The finishing touches for your appearance in the financing meeting

If you are sure of your cause and you appear confident, that contributes significantly to a positive overall impression. But also think about the first impression you make on your advisor - which is primarily conveyed through your appearance. So make sure you have a well-tended wardrobe. You don't have to follow a specific dress code, you should choose an outfit that you feel comfortable in.

We have summarized all the important points for you at a glance on our mortgage checklist.

It is best to have a morning appointment for the consultation. Then you (and your advisor) are still rested and have your head free to play around with numbers. Make sure you plan enough time so that you don't have to look at your watch during the appointment.

Compare building interest and save

Updated daily: Our mortgage comparison provides you with the best interest rate offers - from over 400 providers!

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