For business transactions, the due date of the payment is often made dependent on the position of a security. However, this does not apply to all areas, certain things still need time, including the payment of real estate loans. Have you wondered how your loan payment works? In a nutshell, we will explain to you when you receive your loan and what conditions are associated with the payment. Thus, in addition to the obligatory land register entry at the beginning of the individual construction progress by the construction company or the architect must be constantly checked so that the partial amounts of the loan can be disbursed.
A real estate loan can not be paid overnight.
In everyday life, the network has changed a lot, because it goes much faster, for example. However, this does not apply to all areas, some things still need time, including the payment of real estate loans. Building owners or acquirers, who finish their financing only at the last push of a button, can get into unconscious problems.
The search for cheap credit was also approved. There is a small demand for our self-employed consultants to solicit and review hundreds of financing proposals from various banks to find the best solution for them. At the same time, direct credit institutions have become extremely fast and funding is granted within a few days. But there are good arguments for that.
Before the payment of a promised credit, the so-called distribution requirements must be met. This is a compilation of various specifications that are mainly related to credit protection. So many banks again call for a running payroll. Of even greater importance is the preparation of the land register: The liens must be registered and made an executable copy of the certificate of mortgage – upon initial receipt of the deed, the house bank pays out the loan amount.
However, delays often occur in the cadastre offices, and it may take four to eight weeks before the necessary documents are available. Given these possible delays, potential real estate owners should not hesitate to spend too long on their financings. It is therefore better to start looking for a loan early and then make sure that the conditions for the payout are met.
Requirements for the payment of a construction loan
Therefore, the purchase process is usually strictly regulated by the involvement of a notary representative, thus providing collateral to the buyers and sellers. At the same time, however, is a little patient, since the individual steps, such as the registration of land charges in the cadastre, have always taken a certain time. In contrast to the acquisition of a completed property or a follow-up financing, the financial sum for construction projects is not immediately made available, but paid out after the progress of the construction work.
The real estate purchase process is also important for the financing since the payment of the net loan amount depends on the purchase price due as well as the entry of the guarantee. The payment of the financing amount thus takes place only after the notary has communicated the purchase price due date and entered the land charges. Because, among other things, larger settlement times are to be expected from the responsible cadastral office, a corresponding notarial certification (notarial confirmation of rank) can also temporarily replace the proof of the land charge application.
In a construction project, the financial sum is not made available immediately, but distributed according to the start of construction. For legal protection, the Brokers ‘and Builders’ Ordinance (MaBV) regulates the services for which the client can claim part of the contractually agreed contract value for the construction of real estate. It stipulates, for example, that 40% of the contract sum is for external skin construction, 10% for the installation of windows and glazing and a further 8% after completion of the roof.
Thus, in addition to the mandatory entry in the land register at the beginning, the individual construction progress by the executing company or the architect must be constantly checked so that the loan installments are paid out.