Hi there,
We have just joined up today and are very new to this so will have lots of questions too! My hubby and I have bought a block (with a pretty ordinary house that we will demolish). We plan to build but because we are so new to building we are trying to get our heads around everything. There is so much to think about our heads are spinning. We have looked at a few builders but am getting a bit confused. We spoke to our bank (but really need to see them again) and they say that we need to get a builders contract and quotes so that they can do a valuation on the final house (once it is built). The thing is we do not want to sign a buidling contract at this stage as it is too soon. I understand that you can get pre approval but this is not a guarantee. We are quite sure that we should be able to get finance to build but are also needing to sell our current residential property before we can take out the loan to incorporate the current mortgage on the block of land and the funds required to build the new property. Some builders like Dechellis homes have preliminary service agreements whereby you pay $2K to begin the process but this does not appear to be something that the banks accept? They want the full building contract. The issue I have is that we have not even got any council approval or anything as such and so why would be sign a buildingn contract so early in the peace? We do not want to be bound by it as yet. I might sound a bit naive but entering into a building contract is quite scary.
Are you guys able to tell me your experiences with obtaining finance for construction loans and whether you have any advice for me? Would be so much appreciated.
Also, the bank wants a building contract but what about things like demolition and paving and boundary fencing etc - that the builders do not include in the contract. Will the bank lend us money for these items even though they are not included in the builders contract? i.e. these items we need to get separate contractors to sort out...ahhh so many more questions but will ask these later. Thanks so much in advance
Lynne