Basically, taking out a loan is no longer cumbersome – in theory, a visit to the house bank with the necessary documents is enough, and your own loan agreement can be signed quickly. However, this does not mean that a bank loan should be taken lightly, on the contrary: depending on the amount of funding chosen, borrowing means an obligation over many years.
Of course, it is of primary interest to the borrower that the loan is as cheap as possible. The credit costs are initially based on the offered interest rates, but additional credit costs such as land registry costs and possibly estimation costs for real estate financing or agency fees and / or commissions may also be added if the loan is taken out through a credit agency.
Credit from the house bank?
The first course should actually lead to the house bank when it comes to borrowing – but only to inquire about the conditions there and then compare them online with the offers of the competition. The advantage of the house bank is that you are known there and that lending is often easier than with a foreign bank. This applies in particular with regard to checking the creditworthiness: the prospect’s accounts can be viewed easily, it is not necessary to provide account statements.
Where can I find low interest rates?
Unfortunately, cheap loan offers are a relative thing, because for most loans, interest rates are fixed on the applicant’s creditworthiness. In order to determine the creditworthiness or to be able to determine the customer’s scoring, Credit Bureau information is also obtained from German banks for small loans. Added to this is the so-called budgetary bill: the bank checks whether the applicant would theoretically be able to pay the loan installments. To do this, expenditure and income are offset – overall, the lower the interest rate, the lower the interest rate.
Interest rates can depend not only on the creditworthiness, but also on the amount of the loan and the chosen term, for example. Interest rates are also fixed every now and then – which sounds tempting, turns out to be relatively uneconomical in practice, since people with good creditworthiness pay more than they should for these loans and people with poorer creditworthiness do not receive such loans.