Browse Forums General Discussion 1 Oct 23, 2014 5:40 pm HELP! My builder has just sent me my building contract but it says on the cover letter not to send a copy to our bank until elderton homes have counter signed the contracts and returned them to us. Before they counter sign they require a 5% deposit of the total build ($11k+). We're freaking out because I don't want to pay that money and it doesn't get approved. We got pre approval based on the first tender in July but there's been a few changes and about 6k extra fees inbetween. Is this a standard practice? What happened with everyone else? Re: HELP Building Contract / 5% Deposit before loan approved 2Oct 23, 2014 5:51 pm Hi Emma. That is standard practice. I had the same issue just last week. Your stuck between a rock and hard place. You need the approval but can't get it because your builder needs to sign and they won't sign u til u pay your 5%. But in the end you will be sweet 6k is nothing to worry about. Re: HELP Building Contract / 5% Deposit before loan approved 4Oct 23, 2014 10:41 pm Haha you'll be fine Emma. at the end of the day the bank wants you in a house more than you want to be in your own house. An empty land isn't beneficial to them. We are building with clarendon @ georges fair. Who you building with? And what suburb? Re: HELP Building Contract / 5% Deposit before loan approved 5Oct 24, 2014 9:41 am We've got full approval and funds ready to go for our land, it's just the house that's giving us so much greif! We've requested either the contracts be signed prior to paying anything else or a letter from the manager stating that if our loan isn't approved they refund us our 5% deposit. See how that plays out. The broker has said not to sign anything unless one of these terms are met. We're trying to build with Elderton at Jordan Springs. I liked a few of clarendons homes, their sales reps in Jordan Springs were awesome to deal with. Unfortunately by the time we moved walls and made other changes the price was out of our budget When do they start working on the site? Re: HELP Building Contract / 5% Deposit before loan approved 6Oct 24, 2014 9:58 am You should be able to get pre-approval from the bank based on the unsigned tender/contract (that's what we did). My wife works for the bank though so we are probably a bit closer to our lender than most people. Re: HELP Building Contract / 5% Deposit before loan approved 7Oct 24, 2014 10:12 am Hey Matt! We can get pre approval based on the final figure but if they go through the contract and determine the prices we've been quoted for services or materials are overpriced then they can knock us back. For example: if they were charging $200 for handles that can be purchased for $3 then the bank can say no, the evaluation didn't meet the "quote" provided, therefore they won't fund it. Without having the contract signed the bank won't look at it as its basically a waste of their time and services paying someone to go over it all when things still could change, and they'd have to do it all over again. Re: HELP Building Contract / 5% Deposit before loan approved 8Oct 24, 2014 10:23 am I don't think they go to that level of detail when they do the valuation. Basically they look at what you are building and the level of finish and then come up with a value for the finished property (house and land) based on that. We ended up having a couple of valuations done throughout the process but like I said, we were a little more connected then most people. Re: HELP Building Contract / 5% Deposit before loan approved 9Oct 24, 2014 11:37 am That's a smart move Emma, good luck. To be honest clarendon were more expensive than the other 2 builders we were talking to (won't mention any names) but it felt like they just wanted our money, very persistent. Customer service at clarendon got me over the line. Hopefully the slab will get done in January. Re: HELP Building Contract / 5% Deposit before loan approved 10Oct 27, 2014 3:20 pm I guess sometimes it does pay to chuck a tanty lol I got an email this morning confirming we can sign the contracts prior to paying any further money so we can get approval before moving forward anymore. They have fixed up everything I questioned in the contract so let's see how it all goes Re: HELP Building Contract / 5% Deposit before loan approved 11Oct 31, 2014 7:07 am That's fantastic news well done. Good luck. Let me know what the bank says 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 19487 If your patio is going to be 35 sqm then that's going to need Council Approval. The fact that they previously approved your 25sqm patio will be irelevant 1 5624 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16754 |