..sorry about bombing the board with posts folks
As some may be aware, Porter Davis request a payment of 3% when signing of contract....it is at this stage that the lender needs to sight the contract and hence proceed to perform a valuation etc etc....to assess LVR
The potential issue with this maybe, that the valuation comes in lower than the spend (cost that has been signed off on) and hence cause a 'roadblock' in finance proceedings..as it is up to the applicant/s to fund the shortfall....this will of course make it harder to pull out from the deal with PD as they are holding onto 3% of your cash....
My lender has advised that PD is unique at this as his experience with other volume builders is that a contract is presented early in the piece with no $$ having to be laid down at that step....this of course gives piece of mind, in case the valuation comes short and there is a need to pull out or not proceed...he indicated that Henley do this...
Is this generally the case? ie. most builders (and if so, who are they) are happy to provide contract (with all costs included etc etc) without a deposit having to be paid???
and also, can variations to the contract (not structural) be made after the contract has been signed (say with PD) to 'lower' the total build cost just in case the valuation falls short????