The financing of the home is about a lot of money. Typically, builders choose to take out loans in the six-figure range, often funding more than € 250,000. When buying a house the situation is not much different, also large loan amounts are taken up.
When it comes to so much money, it is crucial to choose the right loan and financing partner. Because even small differences in the interest rate can have a significant impact on the cost of financing. Therefore, no builder or home buyer should prematurely sign a loan agreement with his house bank. It is better to compare conditions of different providers.
In the following, we would like to introduce you to four valuable practical tips that provide practical assistance in finding cheap financing.
Tip 1: Do not compare loan offers on the remaining debt
Many prospective borrowers believe that they can easily compare loan offers with the amount of the remaining debt. The basic idea is: the lower the residual debt at the end of the term, the better the loan offer.
But the situation is not quite that simple. Experience has shown that low residual debt amounts are purchased through higher installments. In other words, while the residual debt may be the lowest, it is possible that more money was repaid in aggregate than other forms of financing – including interest charges. It is therefore important to determine and take into account the associated interest costs.
Tip 2: Consider the total cost of financing
The cost of financing can be composed of different positions. Depending on the design of the financing by no means only interest costs. Depending on the financing variant, for example, additional closing fees may be due. Accordingly, it is necessary to check which costs are incurred in total and how much they amount to.
Tip 3: Make a comprehensive interest rate comparison
The biggest impact on the cost of financing is usually the interest rate. That’s why it’s important to get as many financing offers as possible and compare their interest rates. This way you can make a good pre-selection of the best loan offers. Afterwards, attention is paid to further financing criteria, which are relevant in individual cases.
Tip 4: Get help from the expert
In the field of mortgage lending an interest rate comparison is far from being carried out as quickly as many people suspect. Especially on the Internet, the situation has changed, fewer and fewer banks share their current conditions right away. As a result, collecting the interest can be coupled to a high cost.
That’s why it makes more sense to seek expert help. Our financial advisers can solicit and evaluate loan offers from more than 400 financing partners. For you, as a prospective borrower, this means getting direct access to the best terms. In a jiffy, we have determined which banks, building societies or insurers offer excellent conditions to finance your home.
Incidentally, we are by no means limited to the mere comparison of interest rates. In the first step, we work together with you to design a tailor-made financing. The goal is to find a financing solution that best suits your personal needs. Take advantage of the opportunity and ask without obligation.