Recover paid amounts via equity from the construction loan

Hello,
I have a question about construction financing.

The following scenario. We have been transferred an old house with a payout within the family circle of €20,000.00. We have already paid these €20,000.00 through equity. Furthermore, we have paid partial invoices for the architect of €10,000 for the renovation of the house using equity.

Our house loan is not yet running, but in the offered construction loan, we have also included these costs that we have already paid through equity in the total amount.

The plan is to recover this money that we have paid through equity from the construction loan in order to replenish the equity for unforeseen things in life. Of course, we have notarized the payout and there is also a transfer receipt for the €20,000. We also have invoices from the architect.

Do you see any problems in basically recovering the money from the house loan?

Thank you and regards.

So, if what you have advanced is included in the loan summary, you will of course get it back upon presentation of the invoice. But if you advance more than you can draw down, then that is your private pleasure.

Thank you very much. The sums mentioned above are included in the construction loan amount.

Should not be a problem, provided it was accounted for in the calculation.

The plan is to recover the money we paid as equity from the construction loan in order to replenish the equity for unforeseen things in life. Of course, we have both notarized the payment and there is also a transfer receipt for the €20,000. We also have invoices from the architect.

So you have invested equity that you wanted to invest anyway? Now you are aiming for a buffer? I see no reason why you would want to pay out the equity, which is normally used upfront anyway. For example, in your calculation, €100,000 are allocated for your house project. You have already partly provided these €100,000 through €20,000 and €... Why do you then want something back from the bank? I would not pay it out to you, and we (I myself work in real estate financing) do not do things like that. Equity is used (almost) always first, then the loan. It would be more understandable with specific amounts.

It would be more understandable with concrete amounts.

Sometimes people confuse the term equity with "just cash."
Equity is what is used for financing to avoid a 100% financing.
It is used first, and of course, you do not get it back.
Equity is therefore a component of financing. The other would be debt capital.
It would be good to provide numbers, a call to the bank even better ;)