Browse Forums Building A New House 1 Mar 08, 2007 7:04 pm Our builder is asking for a letter from our lender that states the exact amount available for the construction of our home. Because we had to refinance the land loan and combine it with the construction loan our letter of offer states the whole amount. We sent the builders a copy of this letter but apparently it is not correct as it doesn't specify exactly how much is available for construction.
Has anybody else had this problem? I would've thought that the letter we provided was enough as it certainly states an amount greater than what the building contract says. If indeed the builder is correct, is this a letter we should have received from our lender? Or is it something that is given when requested? [sneakersss] Re: Construction Loan Letter 2Mar 08, 2007 7:17 pm hmm...thats what we'll need to do as well.
Im sure the bank could give you something showing your current balance before the construction payments are drawn down and that the additional amount is available for construction. I dont think they would just provide it, you would probably need to ask for it......and being a bank they will probably have a fee for it Re: Construction Loan Letter 3Mar 08, 2007 7:25 pm This is a scam already discussed elsewhere in this forum.
I bet your contract says that if you delay the start by more than 45 days then the price can be revised up by as much as 5%. What they are doing is stuffing you around so that the 45 day delay clause is triggered. They then revise the price up 5%. So quickly find out what they want, find out if the bank can satisfy their requirement and get it resolved now. Let me know if the builder drags the chain. Cheers, Casa Re: Construction Loan Letter 4Mar 08, 2007 7:26 pm vanderlay ...and being a bank they will probably have a fee for it You are most likely right! [sneakersss] Re: Construction Loan Letter 5Mar 08, 2007 9:21 pm Is it normal to have to prove to the builder that you have the finances for the project? Is it a part of the contract?
You have proven you have the finances anyway. He is just being picky. Good point, Casa. Could be a delaying tactic. Re: Construction Loan Letter 6Mar 09, 2007 7:49 am Thanks for your replies, guys.
Casa, You could very well be right in that this could be a possible delay tactic. But it better not be otherwise I'm gonna have to start kickin' some butt! I'd hate to think they were trying to pull one over me because we have already put down a 5% deposit as they've asked. Who, in their right minds, would delay the construction of their own house after all the time/money spend to get to this stage? My partner is going to ring our broker today to get him to possibly shed some light on this situation. Hopefully he'll be able to get us this letter that the builder is asking for. The funny thing about this is that this is a supposed 'house and land package'. The building company knows exactly how much the land was that we bought. You would think they could do a quick calculation, right? Bud977, You have to prove to them that you have the finances to fund the project. At this present moment they are being just a little bit picky as you say. According to their 'Procedure of Purchase' documentation these are our requirements: • Signed mortgage documents & or owners capacity to pay (as approved by Builder). • Proof of land ownership. They already have their proof of land ownership and the letter we sent them certainly states our capacity to pay. But oh, and there's the 'AS APPROVED BY BUILDER' line. Anyway, I'll let you all know the outcome of this situation as soon as I find out. I should also point out that the contract states that they have to start building on or before March 31. They have three weeks to go. We haven't 'delayed' anything at all. We're actually still waiting for the final construction drawings which were apparently sent out a couple of days ago. I find it amusing that they couldn't even express post it to us! [sneakersss] Re: Construction Loan Letter 7Mar 09, 2007 8:07 am Quote: According to their 'Procedure of Purchase' documentation these are our requirements: • Signed mortgage documents & or owners capacity to pay (as approved by Builder). • Proof of land ownership. Its a porter davis! Sounds like they are being picky...will make sure we have it all set out very clearly for them so they dont do the same to us! Re: Construction Loan Letter 8Mar 09, 2007 8:14 am vanderlay Quote: According to their 'Procedure of Purchase' documentation these are our requirements: • Signed mortgage documents & or owners capacity to pay (as approved by Builder). • Proof of land ownership. Its a porter davis! Sounds like they are being picky...will make sure we have it all set out very clearly for them so they dont do the same to us! Haha, indeed it is! I haven't made a secret of it - I'm sure I've posted somewhere here that we're building with them. And if my experiences helps someone else avoid 'glitches' in their building process, then I'm glad something came good of it. [sneakersss] Re: Construction Loan Letter 10Mar 09, 2007 8:46 am It's the Hamilton. Almost like the Dakota which is almost like the Dromana. With the study and the location of the dining room being the major difference.
I'm just amazed at how fast time is flying. Yet, the days can't seem to go fast enough either. Hehe We first approached our broker in September '06. Signed the land contract in October and settled it in December. Now we're (fingers crossed) about to start construction. If all the powers above smile down upon us we should be in by August. [sneakersss] Re: Construction Loan Letter 11Mar 09, 2007 8:54 am yeah..they are pretty similar designs! Except yours being a prestige will be a bit nicer Mind you, with the amount we spent on upgrades, hopefully it will be almost as good Re: Construction Loan Letter 12Mar 09, 2007 9:28 am I'm sure your house will be just as lovely!
I haven't really checked out what their Lifestyle range has that differs from the Prestige range. But, yes, there was a lot of nice inclusions so we didn't upgrade anything cosmetic at all - except maybe the vanity basins and floor tiles. Our primary cost additions were predominantly structural. You know we would've been fine with one of the Lifestyle range (because their floorplans are pretty similar) but we ended up with the Hamilton because of the study room. None of the Lifestyle range had a study at all! At least not when I was looking. We seem to have gotten off topic, ey? [sneakersss] Re: Construction Loan Letter 13Mar 09, 2007 9:44 am ah yes...sorry! Its more fun to hear about your house than annoying builders and banks...but in the right place - and youve probably discussed that elsewhere already Re: Construction Loan Letter 15Mar 09, 2007 1:59 pm Hehe. We're building with PD as well (only a couple of weeks till handover...hoorah!). Not only did we have to have a specific letter from the bank saying how much the mortgage was but, because we we paying for part of the contruction ourselves over & above the deposit, we had to provide a bank statement proving we had the money available as well.
We didn't have any delays after that was provided, though. 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 18896 The HIA contract, in the term & conditions section states that "Commencment" is deemed when the drainage is started or the piers are dug or the slab is formed up (incase… 2 6150 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 |