Procedure for Taking Out a Loan - Experiences

Hello everyone,

assuming you already own a plot of land and now want to build a house with a developer/general contractor. 40% of the construction costs are available as equity, i.e. cash, and the remaining 60% are to be financed through an annuity loan.

Can I then agree with the developer and also with the bank that I want to take out the annuity loan much later? The background is simple: I assume that the invoices for the craftsmen for the other trades will come in significantly later compared to the shell construction. So I would like to pay for the shell construction/roof structure from the cash and only when this is completed and it is foreseeable that the interior work will progress, then "start" the loan with the bank. Ultimately to avoid having to pay commitment interest for personnel/material on the construction site.

Thanks in advance!

Can I then agree with the developer and also the bank that I want to take out the annuity loan much later?

Generally, that is possible.

In individual cases, however, not, for example if the developer wants a certificate of secured financing from a bank in advance. (I think there was a case where someone had 100% equity but a document from the bank was still insisted upon.)

It becomes problematic if you want subsidized loans. Usually, the rule is that the project must not have started yet. So loan before the first groundbreaking, otherwise no funding.

Financing = equity + loan.
Loan conditions result from inquiry need and specification of equity.
From this, the financing with the conditions (prepayment, interest, repayment, and availability period) arises.
Thus, everything is causal and rarely separable.

I would want to pay for the shell/roof structure out of cash first and only "start" the loan at the bank once it is completed and it is foreseeable that the interior construction will progress. Ultimately to avoid having to pay commitment interest for personnel/material on the construction.

It is land. No problem. But since you often don’t have to pay construction interest for a year, probably not necessary. Besides, you are gambling with the interest rates – they have risen in recent months.

Interesting topic. How would it look in the reverse case?

Equity capital available at 40%.
Shell construction is completely financed, afterwards the rest is finished without time pressure with the available equity capital.
Possible? If yes, with what disadvantage*s?

Most banks want you to use your own capital first, and only when that is exhausted, the loan is paid out. Therefore, the reverse variant will probably not work with most banks.

To the OP:
With your variant, you might have problems calculating the equity. Banks usually want to have concrete proof of how much equity you have. For example, bank statements, etc.
If all the equity has already been invested in the construction, you may have to prove the value of the services already rendered. I consider that difficult.
I would prefer to choose a loan with a long availability period now.