Browse Forums General Discussion 1 Jun 22, 2013 5:21 pm Hi there, We are just at tender stage of building our new home with Carlisle Homes and so far it looks like we are going to spend about 350K for building a 43sq double story (4 br, 3 bathrooms , 3 living areas). So far it looks OK and obviously we believe this cost is quite reasonable for what we are getting. Now the problem is I am a bit tensed that we have our contract appointment booked just before 10 days of our overseas trip which was planned ages ago which is totally non-negotiable at this stage I am am trying to understand if this is going to be quite risky incase if we run into under valuation etc? I might sound little paranoid, but I am just thinking if we are doing the right thing to sign the contract that close to our o.s trip. We couldn't get the contract appointment preponed - the builder is quite adamant that he can't get the contract drawings ready before then and if we do it after our return i.e a month later we might miss "september site start allowance" which is a $3000 discount basically on the terms that we should enable them to start building by september. We have budgeted in about 15K under valuation and upto that we can manage although with high LMI, but if the valuation comes back even below that, I am not sure what can we do? How long does these valuations take? Can we order valuations from different banks in parallel just in case? MY mortgage broker thinks the very first valuation might come back about a week later from our contract signing day and that leaves just 4 more days until our journey, which is really stressing me. Can we still leave that with the mortgage broker and deal with this via phones/emails (although this is an extreme case and wouldn't prefer this even with a slightest better alternative)Husband thinks I am thinking too much given that the base price of the house is about 303K including fixed site costs and adding the flooring,heating,security,ducted vaccum etc even the most basic one would get us across the 330K mark. that seems reasonable enough but still I am stressed with what if... Also my mortgage broker says usually construction loans will not have undervaluation and its only at loan consolidation that we will have such problems at final stage of build?? Is that right? Then again we are thinking of getting quotes for driveway & fencing separately and include that in loan application, so in case if the valuation comes back lower we will still be able to proceed with what ever we have now and then the funds that we can save up while building would easily be used for driveways etc in the end. Does that sound a good enough plan? Suggestions/warnings from people who have been through this would be highly appreciated. Thanks a lot! Re: construction loan - under valuation possibilities 2Jun 22, 2013 7:30 pm For our valuation they did land cost plus construction & it took 10 business days to get it back Build start April 2013 - Handover End July 2013. We are in love <3 - viewtopic.php?f=31&t=64062&p=1002912#p1002912 Re: construction loan - under valuation possibilities 3Jun 22, 2013 7:48 pm Banks want to loan you money so they usually will try and approve quickly. Don't feel too pressured into signing quickly as it is imporatnt you are 100 per cent comfortable with everything. It's a big investment. Note most builders ( and most sales folk generally) will try and create some sort of deadline to ensure you sign/ buy now. More often than not u can get the same price or similar later on. if not shop around. Ps with misc quotes I have found in the past sometimes difficult to get loan cash for that as it is not part of construction but considered 'impovement'. Yeh right. Anyway I've tended to have those items as a provional in the contact so you have them costed into your loan but allow you to remove them from the builder later on to soured independent quotes (usually cheaper). Building McDonald Jones Bronte Manor One Contracts Signed Dec 12 DA Lodged Jan 13 DA Consent w/BAL40 Apr 13. S96 Consent w/BAL19 May 13. Slab Complete Jun 13. Frame Brick & Roof Complete Aug 13. Re: construction loan - under valuation possibilities 5Jun 23, 2013 5:38 am scotty78 Banks want to loan you money so they usually will try and approve quickly. Don't feel too pressured into signing quickly as it is imporatnt you are 100 per cent comfortable with everything. It's a big investment. Note most builders ( and most sales folk generally) will try and create some sort of deadline to ensure you sign/ buy now. More often than not u can get the same price or similar later on. if not shop around. Ps with misc quotes I have found in the past sometimes difficult to get loan cash for that as it is not part of construction but considered 'impovement'. Yeh right. Anyway I've tended to have those items as a provional in the contact so you have them costed into your loan but allow you to remove them from the builder later on to soured independent quotes (usually cheaper). Hi Scotty, I think I should have been more clear before , when I said sighning I meant we are at contract stage and we finished sales stage. We already paid about 3K as deposit to the builder already and pretty close to prestart. The problem partly is because the builder seems to think that I will not go anywhere now that we are this far in the process.We feel like we are being taken for granted now, with all those responses lately, may be everyone else is also like that! He is not even able to adjust few appointments to save me from this stress. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18895 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35191 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 |