# How much credit can I get?

Whether it’s a few thousand euros for new living room decor or a new car or several hundred thousand euros for your future home: There are loans in all sizes. Whether and how much you get a loan depends, among other things, on how much money you can raise to pay the installments. In addition to the question “How much credit can I get?” However, you should always ask yourself when or before you take out a loan, how much makes sense and how much you can afford.

### Calculate available budget for a loan

If you want to have an idea of ​​how much credit you can get and actually afford, you must first calculate your monthly household surplus. To do this, compare all monthly income with monthly expenses. In addition to your salary, you also take into account rental income, pensions, child allowance or other investment income when calculating the income. On the expenditure side, rent, ancillary costs, cost of living and all other financial obligations have an impact. The difference between these two values ​​is the amount that you have available each month and therefore can theoretically spend on the loan installments.

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### Examples of possible loan amounts

Now take your disposable income and multiply it by different maturities to get a first impression of possible loan amounts. In order for the sum to really make sense, you should always deduct at least two percent for the additional interest owed.

With a disposable income of 100 euros, it would be a loan amount of around 3,400 euros in three years or 10,000 euros in ten years. If you have 500 euros a month, you would end up with 17,500 euros or 50,000 euros in the same periods.

### Banks often charge a flat fee

Although you can also submit the detailed statement of income and expenses to the bank, many banks calculate a lump sum for the budget surplus. That equates to 600-800 euros plus rent including heating for a single household. For each additional person living in the household, an additional 200 euros will be added. For example, if your two-person household has a monthly income of more than 3,000 euros and pays 1,200 euros in rent, the calculation will be: 3,000 – 1,200 – 800 – 200 = 800 euros available for the monthly loan installments. Projected over the three or ten years spent above, it will be around 28,000 euros and 94,000 euros.

### Terms limit the loan amount

Although particularly freely available installment-free loans can theoretically be concluded with a large number of terms, in reality it usually does not make much sense to make as long terms as desired until the desired loan amount has been reached. The smaller the sum, the shorter the term should be, if possible. As a rule of thumb, you should never repay a loan longer than the life of the item being financed. For example, if you are financing a car and using it for five years, the loan must be repaid in full in advance.

Many banks also limit the terms of interest-only loans to 84 months, and only to 120 months in special cases.

### The real estate loan

In the case of property loans, maturities of more than 10, 15 or 20 years are not uncommon – however, it is important to take this into account, as this time the commitment affects e.g. interest rates. The longer you secure a favorable interest rate, the higher the actual interest rate. In addition, with long maturities, you need to be sure that you can always service the monthly installments over such a long period of time – even if you lose or change jobs or other unforeseen events. By this time, you should not expect too much.

There is also a “natural” limit to the term of the loan: Most banks set a certain age or retirement age as the upper limit. Even if you still have an income as a pensioner (namely the pension), this usually differs so much from the previous income that, if at all, it is only possible to take out a new loan on customized terms.

### Creditworthiness actually determines credit and costs

The calculation of your available household surplus is already part of the credit check itself when you apply for a loan. Here, not only the actual size of the profit, but above all the ratio between income and expenditure plays a role: the more favorable the ratio, the better your credit rating is assessed.

In most cases, a loan also requires that you have a permanent employment relationship. Anyone who can not prove this or can only prove an irregular income – for example self-employed or students – can still apply for a loan, but often pay more interest, have other upper limits on the loan amount and / or have to provide other collateral.

During the credit check, the Schufa score is also checked and you can enclose financial security, such as the car or property with a similar loan.

The better the overall credit check, the lower the interest rate and the more of your available capital is free of the actual loan amount. In addition, your credit rating determines whether you can get a loan at all and how large the maximum amount really is. You can find out how differently the banks assess your situation and which loan offer is the most lucrative with an online loan comparison.

### How fast can you get a loan for a house?

Assuming you have already compared offers and submitted all relevant documents regarding financing to the bank, it usually takes one to two weeks to process and disburse the loan. When comparing offers, you should be aware of whether and that as many work steps as possible are performed digitally – for example, sending documents. It saves time.

### Can you finance a house without equity?

For individuals with an excellent credit rating and a high quality property, banks sometimes offer 100 percent or even 110 percent financing where you only have to pay the extra costs out of your own pocket. However, the interest rates on these loans are often very high and due to the higher total amount the loan runs much longer or the outstanding debt for refinancing is higher.

### How to get financing for a house?

Use online tools to compare different loan offers from different banks. The offers are non-binding in the first step and give you an initial idea of ​​monthly installment amounts, interest rates and other loan terms. In the next step, your financing request will be checked by the bank and an offer will be given to you based on your credit rating.

In addition to taking out a loan, you can (co) finance a house in another way, for example through housing savings contracts or special subsidies, if, for example, you build particularly sustainably.

### What data does the bank need for real estate financing?

In addition to the documents that provide information about your financial situation – such as payroll statements and bank statements – the bank primarily needs information about the property:

• Copy of the sales contract el
• Property information, including building plans and / or floor plans
• Pictures of the property
• construction cost calculation
• For new construction: building description, building application or permit, approved building plans
• Current extract from the land register
• Field map / site plan

### Special features of real estate financing

When asked “How much credit can I get for my house?” Additional factors also come into play – after all, this is a significantly larger loan amount. In principle, equity is required for construction or housing financing. You should be able to pay about 20 percent of the home price out of pocket. There are also additional purchase costs, such as property transfer fee and notary fees. You should also be able to cover this item with your equity – it is calculated at around 10 to 15 percent of the purchase price. So you deduct these two items from the required loan amount before you start calculating what amount and within what time you can actually afford it.
Good to know: There are now offers for property financing that do not require equity. With 100 percent financing, the entire purchase price of the loan is covered, with 110 percent financing, the purchase price plus all additional costs of the loan are covered. However, these offers are only suitable for people with an excellent credit rating and a top property.

Speaking of top properties: Since this acts as collateral when the bank grants a loan, the planned house or apartment also has an impact on the maximum loan amount. Banks usually provide a property loan of no more than 60 to 80 percent of a home’s value. This is the value that banks calculate at a foreclosure auction if you run into payment difficulties.

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Finally tip: Since a property purchased first is usually more expensive to maintain than a rented apartment or house – be it due to repairs or just the extra operating costs – your disposable income is likely to be reduced after the purchase. Take this into account when planning your monthly payments.

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