Browse Forums Building A New House 1 Oct 12, 2016 6:53 am Hi there we are going to be building a project home shortly, this is my first home so unsure of how loans work for building. How to banks usually loan you money for building a home? Do they lend on what the builder has quoted? I only ask because we plan on doing the flooring throughout the house, driveway etc etc ourselves, so obviously this wont be in the builders quote but we will need money from the bank for things like this. Any info on loans for building and any advice is greatly appreciated. Re: Construction loans 2Oct 12, 2016 9:16 am I'm interested to see the responses you get on this. We are first home buyers too with about a 10% deposit. We have been advised by brokers that because we don't even have 20% and it's our first home that banks will generally only accept one quote from the builder for the approval and won't fund anything after completion which means we're stuck paying more for flooring, driveway via the builder because we can't afford to pay cash after completion. I would much prefer to get external quotes for flooring, landscaping and do it after handover. Our builder doesn't even offer the type of flooring I want :S Re: Construction loans 3Oct 12, 2016 2:11 pm We got our loan with the driveway and floorings done by third parties. Just get a few quotes and include them when you submit everything else. They will value it as a construction loan with these things included just as if the builder had done it. If accepted they will give you pre-approval for a certain amount, and then you need to make sure the build price comes in under that. Any more and you will have to pay out of pocket. Make sure you get several quotes from different builders, as they all include slightly different things as standard. Things to watch out for would be things like, electricity and water connection costs, landscaping, fences, site preparation, footings and site works. And expect to spend extra upgrading things like finishes for all the internal stuff, like more powerpoints, bathroom upgrades, kitchen upgrades. Building a Fairmont Custom in Seaford Meadows Our Build Thread Re: Construction loans 4Oct 12, 2016 3:42 pm MJT We got our loan with the driveway and floorings done by third parties. Just get a few quotes and include them when you submit everything else. They will value it as a construction loan with these things included just as if the builder had done it. If accepted they will give you pre-approval for a certain amount, and then you need to make sure the build price comes in under that. Any more and you will have to pay out of pocket. Make sure you get several quotes from different builders, as they all include slightly different things as standard. Things to watch out for would be things like, electricity and water connection costs, landscaping, fences, site preparation, footings and site works. And expect to spend extra upgrading things like finishes for all the internal stuff, like more powerpoints, bathroom upgrades, kitchen upgrades. Thanks MJH for your comments. Don't you mind if I ask you what Bank you have gone with? Appreciate it. Re: Construction loans 5Oct 13, 2016 11:16 pm MJT We got our loan with the driveway and floorings done by third parties. Just get a few quotes and include them when you submit everything else. They will value it as a construction loan with these things included just as if the builder had done it. If accepted they will give you pre-approval for a certain amount, and then you need to make sure the build price comes in under that. Any more and you will have to pay out of pocket. Make sure you get several quotes from different builders, as they all include slightly different things as standard. Things to watch out for would be things like, electricity and water connection costs, landscaping, fences, site preparation, footings and site works. And expect to spend extra upgrading things like finishes for all the internal stuff, like more powerpoints, bathroom upgrades, kitchen upgrades. Hi thanks so much this is extremely helpful! I will be sure to have all of this ready for that next part and it takes some stress off knowing we dont have to get every single thing done by the one builder Re: Construction loans 6Oct 13, 2016 11:20 pm MJT We got our loan with the driveway and floorings done by third parties. Just get a few quotes and include them when you submit everything else. They will value it as a construction loan with these things included just as if the builder had done it. If accepted they will give you pre-approval for a certain amount, and then you need to make sure the build price comes in under that. Any more and you will have to pay out of pocket. Make sure you get several quotes from different builders, as they all include slightly different things as standard. Things to watch out for would be things like, electricity and water connection costs, landscaping, fences, site preparation, footings and site works. And expect to spend extra upgrading things like finishes for all the internal stuff, like more powerpoints, bathroom upgrades, kitchen upgrades. Hi thanks so much this is extremely helpful! I will be sure to have all of this ready for that next part and it takes some stress off knowing we dont have to get every single thing done by the one builder Re: Construction loans 7Oct 14, 2016 5:56 am Yeah we also just got out construction loan and doing air con & driveway after handover. We included quotes with our loan for the builder and it's all in one loan. Our bank (well, building society) also organized or first home owners grant too and sent that away for us. Re: Construction loans 8Oct 14, 2016 6:00 am nicolawhitelaw Yeah we also just got out construction loan and doing air con & driveway after handover. We included quotes with our loan for the builder and it's all in one loan. Our bank (well, building society) also organized or first home owners grant too and sent that away for us. Thanks mate. I do appreciate your comments. Re: Construction loans 9Oct 14, 2016 1:18 pm As above, Just get your builder to include their cost to do everything you want to do in their $$ figure they provide to your bank and then remove them with the builder so that the money is still there. it is important to remember though that if you get a driveway included and remove that from the builder but then choose not to get a driveway or want to use the money for something else then when the bank comes to value the house when you say it is finished they will lower the value and you will lose the money if the value hasn't increased once the house is built. DIY, Home Maintenance & Repair That laser level looks lovely! We bought one for less than a quarter of that price off eBay. It worked really well for us and it's still going now, five years later. After… 1 16711 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5327 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 8707 |