Annuity loan - Is a provision interest necessary?

Hello everyone,

even if this is probably the dumbest question you have ever read in this forum, I am asking it anyway :)
My absolute uncertainty comes from the fact that we have never had to take out a loan in our lives (not even for the cars).

Originally, I imagined that I would sign the loan agreement and get the money into my current account.
When I first heard about a commitment interest, I suspected that it doesn’t work that simply after all.

I always only have to pay for the completed partial work, but do I actually only receive the money for the completed partial work in installments into my account?
That means submit receipts first, then get a proportional amount of the loan sum, or how exactly does something like this work?

How about asking your bank? Only they can tell you how things work with them.

The truth lies somewhere between "the money goes into the account" and "submitting every receipt and it is paid directly to the invoice issuer."

Oh, I see, okay. I thought there were standardized procedures.

Next "stupid" question:

Purchase of an existing property + cost estimates for some renovations, calculate this as a sum and subtract the equity from it to get total X. Now, since it is very well calculated, the entire sum is not needed, what happens to the remaining money?

Pay commitment interest until I die because I don't need the full amount? :D

???

Purchase of an existing property + cost estimates of some renovations, calculate this as one sum and subtract the equity from it to get amount X. Now, because it was very well calculated, not the entire amount is needed, what happens with the remaining money?

Rather calculate with the other case. We had used properties, where the purchase price was about 30% above what the bank would lend or value. You can then fill that gap with equity.

Expect the other case. We had used properties, where the purchase price was about 30% above what the bank would lend or would have assessed as value. You can then fill the gap with equity.

But this can lead to an even bigger following problem:

The loan amount is fully needed and the gap is filled with equity. Now the renovation unexpectedly costs more, creating a gap that cannot be covered because the loan amount was fully used and the equity was also consumed.