Browse Forums Building A New House 1 Mar 28, 2008 10:56 am Hi all,
Our file has been sent to head office from the sales centre for the next stage. I am wondering at what stage will PD ask for proof of finance? We have a formal approval for finance on the land, but the bank is dragging their feet with the house finance. Is there a stage where PD will stop the process until we get the finance sorted? Is a conditional approval enough or will the want the full formal approval? Thanks in advance. Re: Finance at what stage with PD? 2Mar 28, 2008 11:07 am Hey - sometimes it ends up being like a tiger chasing it's tail as sometimes banks won't finalise finance until they see a written contract - but then you can't get a final contract until you have proof of finance!
We have pre-approval for finance on the house - will be giving that to the builder. After 4 years - we're in! Re: Finance at what stage with PD? 3Mar 28, 2008 11:22 am ifyareckon Hi all, Our file has been sent to head office from the sales centre for the next stage. I am wondering at what stage will PD ask for proof of finance? We have a formal approval for finance on the land, but the bank is dragging their feet with the house finance. Is there a stage where PD will stop the process until we get the finance sorted? Is a conditional approval enough or will the want the full formal approval? Thanks in advance. When you signed up with the sales guy and paid a deposit he should've given you a piece of paper outlining the stages and when payments are due. I can't really remember 100% but we got ours either when we signed up or just after we did our first walk through. One of those. It should look a little something like this: http://porterdavis.com.au/content/ourProcess/procedure_of_purchase.pdf [sneakersss] Re: Finance at what stage with PD? 4Mar 28, 2008 12:52 pm our builder asked for prove of finance at the contract signing which was after council approval and final colour selection. Re: Finance at what stage with PD? 5Mar 28, 2008 2:06 pm When we built with Eden Brae (PD's NSW division) we had to have written approval from the bank stating that 'funds were now available for drawing down' and I'm pretty sure we had to have the builders name noted on there.
From memory we needed this before construction would commence. ie after council approval and all that jazz but before anything happened on site. So if you have not been council approved you should have several weeks to sort it out. Re: Finance at what stage with PD? 7Mar 28, 2008 2:48 pm Make sure your building contact is subject to obtaining finance as the bank will not give unconditional approval until they have seen the contract and had it valued.
pre approval needs to be sought prior to contract and sent to PD as well PD will not start on the build until the bank says it is ready to release drawdowns. But dont get caught because approval can sometimes not happen and if you dont have your contract reliant on the finance clause you can be up for 20% of the contract price. Minimuin is 14 days but PD stretched this out to 28 for me. You also have a five day cooling off as well [/i] Re: Finance at what stage with PD? 8Mar 28, 2008 10:13 pm Watch out for this one because when I signed the contract with PD there is a clause saying that proof of finance must be given 30 days before construction - its standard in the HIA contract. PD make it out to be no big deal but if they want to delay the construction start date this can be used as an excuse if it was given less than 30 days before the promised construction starting date. Re: Finance at what stage with PD? 9Apr 02, 2008 2:51 pm What happens if you will pay the project builder in cash and don't need finance? Just a bank statement? We don't own the land we are building on...its my parents house but we are going to knock down and build on it. Re: Finance at what stage with PD? 10Apr 02, 2008 2:58 pm A bank statement should be fine for the cash customer, but may need to be under your parent' s name, because they own land title. Re: Finance at what stage with PD? 11Apr 02, 2008 3:02 pm when I pour i reign What happens if you will pay the project builder in cash and don't need finance? Just a bank statement? We don't own the land we are building on...its my parents house but we are going to knock down and build on it. From what I understand the title must be in your name to be able to build on the land - otherwise the build would have to be in your parent's name. It gets complicated when others are involved. My parent's were willing to fund part of our construction and it became so messy they had to write it down as a gift otherwise they would be on the title, etc. Ray. Second Time 'Round Re: Finance at what stage with PD? 12Apr 02, 2008 4:13 pm If you are building with PD and are a cash customer they also ask you to pay an additional 10% up front which is kept in trust with interest paid. That becomes your final payment when you take handover. Even partical cash customers are made to do this. you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 57259 Not unless you have managed to put it as a special condition into the contract somehow. 1 6155 The fastest thing a builder will do is bank your cheque, those systems work perfectly with lightning speed, everything else is slow burn. Just the way it is. 1 8706 |