Browse Forums Home Finance 1 Mar 22, 2009 11:21 pm Hi All. Great forum, it's a wealth of information. I have a bit of a strange situation" I have pre-approval with RAMS, found a house that is being constructed by the builder as per his plans. The house isn't due for completion until August. Now, RAMS are not giving me a construction loan, because all I need to do is pay a 5% deposit bond, and the rest on completion. RAMS are telling me they cannot value it until completion because it is not a construction loan. What should I do? I'd like to have it valued now, so I know if I am wasting my time or not with this property. I have already signed the contracts, pending finance. If the valuation doesn't pull through at the end, I will be committed to buy? or will I be able to get out of the contract based on the finance clause? Blog: http://house.jay.net.au/ Re: New home / Valuation / Contract etc 2Mar 23, 2009 10:33 am Not to sound too cautious, but I would be worried going with that builder in the current climate. They would need to go into debt to build the house with progress payments, and if someone can't get a loan by the end of it (eg. they lose their job) they risk not making money back on the house. It sounds like to me a builder that could be going bust as it sounds desperate..... Re: New home / Valuation / Contract etc 3Mar 23, 2009 12:32 pm Apparently he builds homes, then sells them complete. As I am not constructing it, I just have to do 5% deposit bond to secure the property. I am just concerned about the valuation in August being too low based on the price I signed for now? I dont know if i should I risk it? I am going to get my own independent valuer to do a valuation now pre-construction. Blog: http://house.jay.net.au/ Re: New home / Valuation / Contract etc 4Mar 23, 2009 1:57 pm Talk to the builder about it, they will have ways to get it working. Re: New home / Valuation / Contract etc 5Mar 24, 2009 12:16 am Mrs Smith, its a spec home. This is normal, nothing 'desperate' about it. Jaytyn, what % are you borrowing? You'll probably find the bank will be quite conservative with its valuation and you'll have to have a decent deposit to lay down up front. An independent valuation would be wise. You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 11992 I believe that liquidated damaged should be amount of actual loss to the owner from the delays. The issue in all of this is building industry lobbying and contributing to… 5 3070 10 9763 |