From when is the financing confirmation legally binding for the bank?

We are interested in a house. Besides the purchase offer, we should provide the seller with a preliminary financing confirmation. Our house bank initially gave us a non-binding offer, then based on 90% of our documents and the property, made the following statement:

"
Dear Ms. X,

Dear Mr. Y,

Thank you very much for your inquiry regarding real estate financing and the initial meaningful documents.

Hereby I confirm that we are happy to support you with the financing request.

The binding review will take place after submission of all property and creditworthiness documents by XYZ Bank.

If you have any questions, I am happy to assist you.

Best regards"

So. On Friday afternoon at 2 p.m., the broker realizes that this is not enough for the seller. That would not be "binding" enough. A binding/legal commitment would not be needed, just something that "sounds more binding." Well. Of course, at that time of day I could no longer reach the bank in person, and the owners decided on a buyer over the weekend.

Now my question: What should a still more binding financing confirmation look like if it is not yet legally binding for the bank? Among other things, a few detailed documents on the property were missing, which the broker could neither obtain for us nor for other interested parties. Other interested parties could hardly have provided anything "more binding."

How was it for you, what were the formulations like? Our bank advisor said he could not become more binding without 100% of the documents and a final review at headquarters.

The house is now surely gone, but maybe we will be wiser for the future. You have to be incredibly fast here. We only had 3.5 days for everything!

Hello,

well, I had a similar problem. In my case, though, I didn’t want to sign the notary contract without having a confirmation from a bank that they would provide me with financing in the amount of the required capital.

Viewed the house on Tuesday, called two hours later and said we are interested. The broker then called on Wednesday saying we got it and wanted to schedule a notary appointment for the following week. I had no problem with that but wanted a commitment from some bank.

So I told the broker, then let’s ask their bank. If they are willing to give me that in writing, then I will sign.

Of course, they couldn’t. mmuuahahha I handed in everything that

So I looked for another bank and found one that did it for me within 5 days without me having to make any obligation since I also wanted the best conditions on the market.

My letter stated that they guarantee me the required amount XY under the mentioned conditions if I want to.

But then I spoke personally with the seller and was able to calmly postpone the notary appointment by 4 weeks, so I had enough time to choose the best offer on the market.

Banks usually don’t like doing that anymore since 01.03.2016 because of new EU laws regarding the granting of loans.

And importantly, if the contract is already signed and you don’t get the financing, you’ll have some serious costs on your hands. I didn’t want to get involved in that game.

What you are quoting there is a non-binding commitment.

Non-binding because apparently property documents and creditworthiness documents are missing.

Which 10% of the documents are missing?

If they are your documents, you have the black Peter and are to blame yourself. If property documents are missing, ask the seller to provide them as soon as possible.

As a seller, this wording would also be far too wishy-washy for me because it says absolutely nothing and is practically worthless.

The letter from the bank is a common commitment, provided it is possible for the bank. It should be enough for the seller, at least they see that you are taking care and have spoken to the bank. There are always many interested buyers who say "I am buying," but don’t even know their own numbers, let alone have looked into the possibility of financing. I don’t understand the agent who has the task of explaining this form from the bank to the (unaware) sellers. I hope for you that this disappointment will remain an isolated case. In brief, regards

I have already had to provide proof of financing in a bidding process for a municipal building plot. There, a financing offer from an intermediary was sufficient. The amounts, conditions, and the potential lender were visible. That was enough (and was already a few months old).

The letter from the bank is a common promise, as long as it is possible for the bank. It should be enough for the seller, at least they see that you are taking care of it and have spoken to the bank. There are always many interested buyers who shout "I’ll buy," but don’t even know their own numbers, let alone have dealt with the possibility of financing.

I don’t understand the agent, whose task it is to explain this bank form to the (clueless) sellers.

I hope for you that this disappointment will remain an isolated case.

Best regards in brief

If only someone would show up with cash and a €5000 higher bid....