Sign financing

Hello everyone,
when is signing a financing agreement sensible? Before or after signing the construction contract?
I am undecided:
- Before signing the construction contract, the advantage is that I know the financing is secured and I don’t have to worry about not finding a bank later to finance my project. Although, I would include a clause in the contract that allows me to withdraw from the construction contract if the financing fails. But if by then building application documents have been compiled, etc., I have to pay for that out of my own pocket.
At this point, however, I am a bit afraid that the construction company might still back out during negotiations. For example, we had our construction service description and the construction contract checked. Both need significant adjustments. If the contractor does not want to do this or refuses, I have to consider whether I can live with the unchanged terms or take the risk or not. If not, I would have to start the search from scratch and the financing or the period of free commitment interest runs out.

- After signing the construction contract, I would only be afraid that we might not get the loan. We do have a lot of equity (six-figure) and both a good net income, but sometimes things are just strange :(
My wife is on parental leave until the end of May, then will go back to work normally in a permanent position. That is the point where I’m afraid the banks won’t cooperate and say, come back when your wife starts working properly again, so that we know she really takes up employment again. These concerns were immediately dismissed by two financial advisors who said this would not be a problem, but sometimes things are just strange.

What would you do?

Nobody can give you a guarantee. Either gamble or security.

I am always for security, because the expiration of the availability period as well as any costs associated with it are manageable and predictable.

I would have no desire for a 250,000 euro work contract if I cannot pay it.

Regards

And even the loan agreement does not protect against the deal falling through with the homebuilder for whatever reason. However, you are wiser after the first round and won't need as much time the second time around... speaking from experience.

I would schedule the notary appointment in such a way that you can fully utilize the acceptance period of the loan agreement and also still be able to revoke it free of charge.

@HilfeHilfe That is a good idea. So you mean signing the financing, then making an appointment with the construction company in the following days, and if something goes wrong, taking advantage of the statutory 14-day cancellation period and canceling?

The tip from is more about buying the property. You want to build a house anyway, right? And the house can be built by A or by B, but it will be pretty much the same house with maybe small changes. The deal can always fall through, you are not protected against that. However, you will not have to do the whole "information gathering round" that you do at the beginning again in this form, so the provision period should be fine. What can happen as a consequence after cancellation is that you end up concluding a deal with a significantly worse interest rate again. As already wrote:

the expiration of the provision period as well as any costs associated with it are foreseeable and plannable

If you now maybe pay 1 or 2 months of provision interest on the remaining amount, that won't kill you, but if you pay 0.2% more interest over 20 years, that is likely much more significant.