Answers
The immigration authorities receiving the application will issue a confirmation that the application has been submitted, provided that all the necessary documentation has been submitted with the application. This confirmation (Blue Card) is valid for one year and it constitutes an evidencing document until the residence permit is issued. Under this document, you are legal in the country, no need for a valid Schengen Visa.
The applicant and his family members are not affected by the duration of the processing time of their application, from the moment the application is submitted to the relevant authorities until the issuing of a decision by the Secretary General of the Decentralized Authority regarding their residence permit. (The estimated period won’t usually exceed one month.)