Browse Forums Home Finance 1 Apr 25, 2009 12:32 pm Hi there, Am hoping that someone might be able to answer a few questions for me. We are planning to build the Foxley 29 with Porter Davis in Wallan. We have pre approval from the bank and our tender appointment in a couple of weeks where I believe we need to pay the 3% deposit, followed the next week by contract where we pay 2% further. Since the bank will not give final approval on the loan till we have signed contracts and they have the land valued can someone tell me what happens to these deposits (coming from our own savings) should the bank not give final approval on the loan. I dont think this is likely but with all the new bank lending laws I just want to know if we will lose our money or whether signing the building contract means it is subject to finance. Thanks! home loan advice 2Apr 25, 2009 2:49 pm ritab25 Since the bank will not give final approval on the loan till we have signed contracts and they have the land valued. Welcome ritab25. I don't know why they said to you but banks can give you final approval before signing the land contract. I personally arrange this as a mortgage broker for my customers so I know first hand it is possible. Re: bank/deposit question 3Apr 25, 2009 7:59 pm Thanks for the reply and the welcome. Ive just come across this forum and have got some great ideas and info so far. I probably wasn't clear enough in my original question but my land contract was subject to financing so we are ok there (land wont title till Jun anyway), its the building part I am worried about. Just got a reply from loan officer at the bank who said he would give a letter of conditional loan offer if this would help but I dont know if this means much more than the preapproval. Would you recommend requesting it? My main concern is whether or not we will be able to get building deposit money back if this all falls through at the loan stage. How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4814 thank you! do we need to get this or our builder before we commence new build on the block? 2 10404 |