Browse Forums Building A New House Re: Loan preapproval 5Nov 18, 2016 6:11 pm Also make sure there is no sunset clause that expires before the estimated settlement date in the land sales contract, there have been instances where a developer has gotten sales contracts signed and then been able to delay settlement for long enough so the land value is better then originally sold for The sunset clause is then activated to refund the buyers deposit (in line with the sunset clause) only to re-release the land for the current higher value price. Essentially the developer uses the land sales contracts and deposits in trust to leverage a loan for their works only to then cancel the original contracts and release for better money. The buyer is left with their deposit and no way to conceivably buy at the new price unless they raise more funds and hope they qualify for a loan at the higher price. 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 19112 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 35330 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11933 |