Whilst new to mortgages and home finance, i'd call myself a pretty expert (and cautious) planner . I've costed my (modest) proposed building project extensively and allowed extra in all cases where there is a possibility of variation. I'm financing the full value of the land + construction with the aid of a guarantor (thanks mum and dad!).
My total build cost + land = $300k
Say I complete the construction and (fingers crossed ) it comes in according to budget. What happens if I then get a valuation saying the property is worth $350k? Can I then get the mortgage refinanced, lending me less than 80% LVR, and release my parents as guarantor?
Obviously what I am proposing with the valuation is best case scenario!! please excuse my noob-ness. But just say it works out that way. All the established properties I have looked at of the standard of my proposed build are $350k - $400k in the same street.
Thanks in advance for the help!!!!