I currently have a mortgage on my house, but intend to purchase a block and build in the near future. What would be the best course of action here?
Ideally I would like to purchase the block and commence building whilst still living in the current house, but dont think i can afford to service two loans concurrently. I guess I can just about squeeze enough to meet the monthly repayments on a land only loan, but that would mean I'll still have to sell off before I can even commence building the new home?
To make matters more difficult, I dont have much equity. So is it best to sell and payout the current mortgage first, then apply for a construction loan to build? The downside is that I'll then have to rent for awhile and move house twice.
Alternatively, is it possible to get a pre-approval for both the total land and construction amount, BEFORE i sell my current house? I dont want to sell then find out that Im unable to borrow more to build