Does the bank require our own equity when taking out a loan?

I have a question about equity. If we take out a loan, do we then have to transfer our equity to the bank? After all, costs such as the notary, real estate transfer tax, etc. must be paid from the equity. Do you have experience with this? Do we have to retain the equity or part of it in order to cover the incurred costs? Thank you very much for your answers.

As a rule, equity must be used up first. Therefore, it is advisable that if one still wants to pay for kitchen and furniture from their equity, this money should not be declared as equity.

Thank you, Jaydee. But do we have to "transfer" the remaining equity to the bank?

Thanks, Jaydee. But do we have to "transfer" the remaining equity to the bank?

No, of course not!

For example, you have 100,000 but state equity of 75,000 for the financing. Loan approved.
Now the first invoices arrive that you pay from your liquid equity (the 75,000).
When it is used up, the bank will then take over the invoices.
Most banks handle it this way :)

Exactly. Even then, it is still advisable to reserve a bit of the specified equity capital for smaller matters in between. Otherwise, you have to initiate a payout from the bank for every little expense.
House connections, surveying, transfer of the surveying results into the cadastre, materials for outdoor facilities come to mind, where the invoices trickle in during the construction period, are rather small amounts that cause relatively much effort...

Equity capital can partially be used "concurrently with construction," which is the magic word you can agree on with the bank.

Thank you for your answers. But I don't have to plan the entire equity for the previous land purchase, do I?