Process of financing / Use of the loan

Banks often pay out a flat rate of 5,000-10,000€. If you want additional money, you must substantiate this "advance" with invoices. The kitchen issue could also cause problems. Was the loan brokered? What does the bank's broker or salesperson say?

How did it go with you or how does something like this generally work? Do we simply get, for example, a five-figure amount paid out by the bank as an "advance" with which we can then independently settle such "smaller" invoices?

Yes, have them pay out a lump sum over €5000. Reason: this and that.

We still submit the invoices so that the bank knows that we are really buying something for the house with the money and not just, say, a new car or other stuff?

Only if they want that. With our bank you could call and ask them something. They then answered, it was quick and easy in a phone call.

Thank you for all your responses!

But we use the equity anyway at the end, so we have it as an intermediate buffer anyway.

We had to provide ours right at the beginning, which I can understand from the bank’s point of view.

I have always transferred smaller amounts from equity this way and when the 5000€ were collected, I commissioned the payout to the construction account and got the money back.

It will probably come down to exactly that for us as well. Sounds easiest if they don’t work with advances.

The kitchen thing could also cause problems

We have a written confirmation from the bank that we can submit the kitchen + inventory at the end as part of the construction financing because there was this misunderstanding about the amount of equity at the beginning.

And something else:
We have a financing amount of 350k.
Assuming we end up needing only 330k.
Does the bank then just pay out the remaining 20k and finance later things (garden, fence, terrace, etc.) with it?

Does the bank then simply pay out the remaining 20k and you finance later things (garden, fence, terrace, etc.) from that?

Yes, outdoor facilities are among the items that can be financed.

So for us it was like this: We had a joint construction account with online access and the bank paid the "large" invoices for us. The construction account was funded with equity and the available loans. We could always transfer up to €5,000 and up to €50,000 (flexible) online on request. I paid all the small invoices like that, the big ones the bank paid at my request (large installments to the house construction company). Payment through the bank = costs for you - but: a small security that it was paid correctly. Example: Invoice of €89,000, the bank deposits €100,000 into the account and pays the €89,000 to xy. Balance = we had available for small expenses.

We were also able to simply pay ourselves a larger amount at ING, used it to settle the invoices (also lots of smaller ones), and then uploaded the proofs to them online, it worked completely smoothly.