Hi all
I bought a land in Innisfail, the land is not titled until April 2010. I haven't organised a loan yet.
Should I get formal approval from bank now or until it titled (in this case it might be too late to get a 5K discount from peet)??
And do I need to bundle the loan together with Building contract?? But my land is not titled yet and could be delays as I read in here.
I'm confused
help.... what do you guys do usually?
We made sure we had preapproval for both land and house before we signed the contract. They then gave us a full approval on the land and conditional approval for the house as we haven't signed contracts yet. We are using the equity in this house though, so not sure if the same applies to you.
I'd get onto the phone to a bank or broker and get an idea of how much you can borrow...and get the approval for the land started as they take ages!
Good luck.
In my experience, pre approval only last three months so you are not too far off.
Pre approval is there to give you confidence that all things considered the bank will lend you the money based on income/expenses. It is by no means an actual approval and is always subject to valuation whuch they do not do at pre approval stage.
Also, some will charge extra if you do it in two stages i.e land then house.
We put deposit on land in March I think, asked for settlement in Dec this year, started looking for houses, once we found House moved into contract stage, submitted loan application for house and land and then bought land settlement forward once all ducks were lined up. We got pre approval so we knew the budget we had.
IMH unless you have to, push you land settlement out until you are ready.
Hello,
The most a lending institution would likely want to do at this stage is a conditional approval anyway.
Depending on the stage of the development you are building in it would hinge on whether the lot you have purchased is staked out and valuable as yet.
If it is not at to this stage even then a conditional approval subject to valuation. With a settlement condition that is subject to registration of Title would mostly likely be done.
If it IS valuable. You may be able to get them to do a full approval for the land if it is valuable with just a settlement condition subject to registration of title.
I would suggest at least seeing a broker or lender about obtaining a preapproval (having your incomes checked etc) With the conditional then unconditional approvals fully done once inside the 3 month bracket.
There are a plethora of things that can make a loan difficult to place depending on your circumstances. If you can get a some of your particular items ticked off early then it may save headaches later on having to get everything together in a rush.
Regards,