We're a little way off a KDR but trying to get my head around the financing process...
1. We have found a home and builder we like.
2. The builder will give us some preliminary costings with our inclusions etc. (We will have to pay 5% deposit with our own cash - do we include a subject to finance clause at this stage? Do most builders accept this?)
3. Do we seek pre-approval from the bank at this point? Will they provide it??
4. We have our home demolished (funded ourselves)
5. Final build contract is drafted after more detailed soil tests/engineering can take place. May increase/decrease contract price.
6. We then head back to the bank to have our construction loan approved.
Questions...
- Is my understanding of the process right? Have I missed anything?
- What about the cost of driveways, aircon, flooring etc that we'd like to arrange ourselves? can we ask the bank to finance that too or do we need to keep saving??
Thanks in advance... loving the wealth of information on these forums!