Nothing binding signed yet and already a notary?

Hello everyone,

I submitted the application at the bank today, I have about 30% equity and I am taking out 70%. The conditions are effectively 3.5%, which I find acceptable.

But so far, apart from the mortgage deed order for the notary, I have nothing in writing; the advisor said that is enough and there will be no problems. My loan agreement will be sent in about 2-3 weeks.

However, the notary appointment is in almost exactly 2 weeks. What can happen if I sign at the notary but the loan agreement does not arrive, etc.? Would you secure yourself better in this case? I have already read that a withdrawn financing can cause great problems. With my data (25, single, no ongoing loans or liabilities, relatively high income, 1/3 equity) I actually assumed there would be no problems and the advisor also confirmed this to me verbally, but what if the bank pulls out after all?

This is my first financing and therefore I am sometimes maybe a bit overcautious. A colleague had the notary appointment 5 weeks after the loan agreement, and I would be afraid that the seller might change their mind and you end up with a signed financing without a property.

So, in summary: is a mortgage deed order sufficient as a commitment for the notary?
I myself only signed the application, but the mortgage deed order was signed by the branch manager + advisor.

Many thanks in advance
Regards
Fana

Hello fanalord.

A draft for the creation of a land charge does not constitute a loan commitment and cannot be interpreted as such by you.

I recommend cautiously applying pressure on the bank and asking for faster processing so that the notary appointment with loan commitment can be kept. After all, the bank also has an interest in the transaction going through now.

Even if the facts you mentioned look quite positive and therefore a loan commitment is likely, you should under no circumstances sign the notarized purchase contract if the written !!! loan commitment is not yet available.

In practice, I have already dealt with people who had already signed the purchase contract and then did not receive financing. In that case, there was even an agent involved. So why take unnecessary risks?

In case of doubt, you will receive no further support from your bank and will be left alone with the problem.

Best regards

M. Thiemann

thank you for your reply,

so far I have only received the verbal assurance that everything is no problem and that I can even sign today. But I still feel uneasy about it, I will keep on it and insist that I see something in writing before the notary appointment or, preferably, that I can sign the loan agreement....

the idea of signing and then the bank backing out a week later worries me. 1/3 equity is already a lot, but I don’t know what their score is based on

So now I have received as a response to my email that their financing commitment is available, should I then still pick it up or sign it, is there a document for that? I just can't really communicate well with my advisor because the conversations often run very fragmented and I don't really believe I have gotten someone particularly competent. I will simply follow up in parallel to find out when I can have something in writing, an email is not really legally binding.

Hello fanalord,

and I always thought financing was a matter of trust

Do you know that everything in the contract is stated correctly? Interest rate, fixed interest period, etc.?

I stand by my point: you should have the loan agreement in your own hands and have it checked before you sign a notarial purchase contract.

If everything then works out with the notarial contract, you can sign the loan agreement and return it to the bank - not before! Should there unexpectedly be difficulties with the purchase contract, you may have legally accepted a loan that you no longer need. So pay attention to the correct order.

Also pay attention to any deadlines set by the bank regarding the terms. You should schedule the notary appointment within this period so that you can meet it.

Best regards

M. Thiemann

Hello,

according to the advisor, the financing commitment is in place and the forms have been sent to the notary by mail. I haven't been able to reach him yet about which forms, but he gave me and faxed the land register order. So it may be that the loan agreement is sent to the notary, or is that unusual? I already left him a message saying that I would like to know which forms and that I want something in writing before the notary appointment.

Regards