Bank Lending Regulations

Hello,
We have taken out a loan for our property. In addition to that, a little extra to pay the costs for the house construction in advance (development costs, connection fees, excavation, etc.).
The house itself will be paid later, after completion, from the proceeds of our house sale. The bank (actually) is also aware of this.
Now we finally have the financing approved, the bank has (finally) also paid for the property, but does not want to pay these aforementioned costs and states that we should pay them from our own equity. However, we have stated that we have no equity. The bank, however, means the proceeds from our house sale by equity.
Since we will only receive the money from the house sale AFTER we have to pay these aforementioned invoices and we have exactly included these costs in advance in the financing, we are now very unsettled. So we are now in a position where we basically do not have the money to pay the invoices that arise before the move/house sale/payment due date.
Therefore, my question: Is the bank allowed to refuse this and require us to pay from the money that we do not (yet) have, especially since we specifically took out the loan also for the payment of these invoices?
I would be very grateful for prompt help.

That seems very strange to me. We also only sell our house after we have finished building our new house and then pay off a loan completely. We also took out the loan for incidental construction costs, floor coverings, wallpaper, outdoor facilities, etc. and have already spent part of it on earthworks, etc. We made a detailed statement at the bank showing exactly what we need the money for (of course estimated) and that was no problem. Don’t you have anything in writing? The bank can’t give you the loan for that and then refuse to pay.

Best regards
Sabine

Yes, that's exactly it. We applied for the loan for the property through a financial advisor. + incidental costs, such as brokerage fees, property transfer taxes, as well as notary fees, etc. Furthermore, we included this buffer for the above-mentioned costs, which we now need because the excavation for the foundation slab is more expensive than expected and additional costs have arisen. And now we are receiving a letter from the bank saying that they have paid for the property, but that we are supposed to pay these aforementioned costs from our own funds. I ask myself whether they have understood that we only get the money upon completion of our house and thus also from the sale of the old house. So we hardly have 20,000 - 30,000 euros just lying around to pay for this.... especially since there are other things to pay as well. Therefore, I wonder whether all of this is legal? The financial advisor had already included these costs beforehand. Otherwise, the bank would have had to give us much less money.... or could have asked what we need the additional money for...

Have you spoken with the broker about the situation? After all, he is the one who receives a hefty commission.

Probably something got lost in communication between you and the bank.

From that perspective, I wonder if all of this is legal? The financial advisor had included these costs beforehand. Otherwise, the bank would have had to give us much less money... or could have asked what we needed the additional money for...

Yes, if what you wanted didn’t come across that way to the bank.

The loan agreement should state what the loan funds may be used for.

The broker probably did some optimistic calculations!

Do you really have no equity at all besides the house?
And why should the bank advance funds? Usually, a bridge loan is arranged until the house is sold.