Guess what? I can confirm that my mortgage broker is AN IDIOT!!!!
He told me I need to get a house/land contract in order for the bank to approve the loan, and the bank won't settle the land first. As I trust his "professional knowledge" and so I have been rushing out for finding a builder who agrees to draft the building contract within a few weeks times and fit my budget, thus wasted a lots of time and got my grey hairs growing ~
Just spoke to another mortgage broker from PD, she told me that I need to settle the land first before the building contract stage, so I ring the bank (Colonial) and realise there is an "overdraft account" for short term which would allow me to settle the land first, then the bank (only CBA) will
cover that money from my First Home Buyer Grant later ~
So I rang and questioned my mortgage broker who is an absolute idiot and he didn't seem to know much about how that works ~ then I asked him the question "Can you tell me honestly do you know much about Construction Loan", then he told me he mainly dealt with people buying established house or "house & land package - turn key solution" from builder ~
So I asked him to put in application for overdraft to settle the land first, as I told him realistically I had scared most builders BIG or small when I requested them to give me a building contract within 2 to 3 weeks time if I ever put down a deposit!
I asked the bank could I change my mortgage broker, and they said I'll need to resubmit the loan application. As my loan is pre-approved already, so I didn't change broker YET ...
But with this idiot, I actually needed to tell him how the allowance works (before he told me the builder needs to do everything in the contract blah blah) ~ and he never thought about applying the overdraft facility to settle my land first, only giving me an unrealistic timeframe and pressure me for building contract (he doesn't even realise how long it takes for drafting building contract) ~
If I could settle the land, then I'll have enough time to deal with builders appropriately instead of excluse most of them because they coudn't do the building contract fast enough ...
Lesson learnt ... You cannot trust a mortgage broker to know more than you, and I did feel like I am the mortgage broker when I told him how allowance works, how slow it will take for drafting building contract and there is such a thing called Overdraft Facility available from Colonial/CBA ~
Once the land is settled, I will definitey change mortgage broker who is experienced in dealing with construction loan and know how it works