Prepayment penalty and 14-day right of withdrawal

Hello

I have a question about construction financing.
I am about to sign a loan agreement for a plot of land and a house.
Now, there is a 14-day right of withdrawal from the conclusion of the contract.
So far - so good.
Now the bank person said that after the period we would have to pay a high amount of money to cancel the contract again (i.e. after the 14 days) ... keyword prepayment penalty.

We do not yet have the land and there could be complications (notary, contamination, etc.)
and it takes a while, about 6-12 weeks, until the land is transferred to us.

But we only need the -first installment- from the bank when we want to pay for the land,
of course, the 14 days will be long over then.

So now the actual question:
Do you also have to pay the prepayment penalty if the 14-day cancellation period is over but no money has yet been drawn from the bank???

Yes. Then the contract runs with all rights and obligations of both contracting parties.

Sure. Or do you just want to conclude a contract "in advance"? The bank also refinances itself.

I would talk to the bank. If a reason for non-acceptance lies in the property, then you could withdraw from the loan agreement by agreement. The bank might factor that in quite easily. But it also has an advantage, because you will then be customers if the purchase contract is concluded. An alternative would be that you do not enter into a loan agreement initially, but wait for the purchase contract. At present, there does not appear to be a "sudden" increase in the conditions. ;-)

If you want to have the security of financing at your back, but do not yet want to conclude a final loan agreement yourself (reasons have already been mentioned), then have a basic financing commitment given to you in writing. Then you only have the risk of an interest rate change until the final contract, because interest rates can usually only be guaranteed for a few days (a few weeks). This risk should be significantly smaller than a VFE due to non-acceptance of the loan.

Hello, I agree with Toxi. Better to conclude later and take advantage of the 14-day withdrawal period than to accept a VVE.

Everything has already happened once!